2017 (5) TMI 1023 - AT - Service Tax

Manpower Recruitment and Supply Agency Services - activity of cutting of sugarcane and loading the same and conveying it in bullock carts and delivery at the sugar factory, and also unloading the same at the sugar factory - Held that - Identical issue was considered by this bench in the case of Shri Samarth Sevabhai Trust 2015 (3) TMI 1170 - BOMBAY HIGH COURT , where it was held that the activity undertaken is of harvesting, loading and unloading in a package deal to a sugar factory would not be covered under Manpower Recruitment or Supply Agency Service - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Taxability of activities carried out by the appellant regarding the service tax liability.
2. Interpretation of whether the activities undertaken by the appellant fall under Manpower Recruitment and Supply Agency Services.

Analysis:
The judgment by the Appellate Tribunal CESTAT Mumbai pertains to an appeal against an Order-in-Original confirming demands for service tax liability, penalties, and interest. The issue revolved around the taxability of activities conducted by the appellant, a Sangh involved in harvesting and transporting sugarcane to a sugar factory. The Revenue contended that the activities would be classified under Manpower Recruitment and Supply Agency Services. However, the Tribunal referred to a previous case involving Godavari Khore Cane Transport Co. (P) Ltd where the High Court of Bombay upheld the view that similar activities did not fall under the aforementioned category. This precedent was reiterated in another case involving Shri Samarth Sevabhai Trust. Consequently, the Tribunal held that the activities in question were not covered under Manpower Recruitment or Supply Agency Service based on the established legal precedents.

The Tribunal's decision was influenced by the judgments of the Hon'ble High Court of Bombay, which consistently ruled in favor of the appellants in similar cases. By following the legal precedents set by the High Court, the Tribunal concluded that the impugned order confirming the tax liability was unsustainable and should be set aside. Therefore, the Tribunal allowed the appeal, setting aside the impugned order and providing for any consequential relief as per the law.