2016 (12) TMI 285 - AT - Service Tax

Demand of Service Tax - Manpower Recruitment and Supply Agency Services - whether the demand on the ground that the appellants have entered into an agreement with the Sugar factory for harvesting of sugar cane, loading and unloading along with transportation to the sugar factory, justified? - Held that - the issue involved in this case is now squarely covered by the judgment of Hon ble High Court of Bombay in the case of Commissioner of Central Excise Vs. Samarth Sevabhavi Trust & Ors. 2015 (3) TMI 1170 - BOMBAY HIGH COURT , where it was held that there is no supply of labour to the sugar factory concerned. The respondents have undertaken the activities of harvesting of sugarcane and transporting the same to the sugar factory for which labour is employed. Having regard to the nature of contract between the respondents and sugar factory and the scope of definitions, it appears that the Appellate Tribunal has rightly come to the conclusion that the respondent s work, though provided services to the sugar factory, did not come within the mischief of the term Manpower Recruitment or Supply Agency . Therefore, it is clear that no manpower has been supplied by the respondents to the sugar factory to constitute supply of manpower. Appeal allowed - no taxability - decided in favor of assessee.

Summary

Issues:
- Appeal against Orders-in-Original regarding Service Tax demand for Manpower Recruitment and Supply Agency Services.

Analysis:
The judgment by the Appellate Tribunal CESTAT MUMBAI pertains to two appeals challenging Orders-in-Original issued by the Commissioner of Central Excise & Service Tax, Pune-III. The issue at hand revolves around the demand of Service Tax under the category of Manpower Recruitment and Supply Agency Services. The lower authorities had upheld the demands citing an agreement between the appellants and a Sugar factory for various services related to sugar cane harvesting, loading, unloading, and transportation to the factory.

Both parties acknowledged that the issue in question is akin to judgments delivered by the Hon'ble High Court of Bombay in specific cases, namely Commissioner of Central Excise Vs. Samarth Sevabhavi Trust & Ors. and Commissioner of Central Excise Vs. Godavari Khore Cane Transport Co. (P) Ltd. Furthermore, it was noted that the Revenue in Central Excise Appellate authority appeal had withdrawn appeals filed before the Hon'ble High Court of Bombay on the same issue. Consequently, the Tribunal concluded that the matter is no longer res integra, leading to the setting aside of the impugned orders and allowing the appeals with any consequential relief deemed appropriate. The operative portion of the order was pronounced in court, bringing a resolution to the appeals.