2009 (7) TMI 521 - AT - Service Tax

Cargo handling Services- manpower recruitment or supply services- The revenue demanded service tax from the assessee on the ground that the various activities carried out by it fell under the category of manpower recruitment agency and cargo handling services . The adjudicating authority confirmed the demand. On appeal, the Commissioner (Appeals) set-aside the demand, as the services was not liable to tax before 16.06.2005. Held that-supply of manpower was taxed for a period when the law did not provide levy for the same, the appellant cannot be asked to pay taxes under this category. in case of cargo handling services held that, none of the pages are reflecting that there was realization of service tax. When the service tax was not realized, the appellant was not directed to deposit the same, thus the appeal filed by the revenue dismissed.

Summary

Issues:
1. Whether the respondent provided taxable services under the categories of Manpower Recruitment Agency and Cargo Handling.
2. Whether the demand for tax under the above categories was sustainable.
3. Whether the appellant was liable to pay tax for the services provided.

Analysis:
1. The Appellate Tribunal considered the appeal challenging the order passed by the Commissioner (Appeals) regarding the tax liability of the respondent under Manpower Recruitment Agency and Cargo Handling services. The authorities examined the activities carried out by the respondent to determine the taxability under these categories. The Commissioner (Appeals) held that the respondent was not liable for tax under these categories as the activities did not fall under them.

2. The Adjudicating Authority had initially found the respondent liable for tax under both categories. However, the Commissioner (Appeals) disagreed with this finding and examined the case record and submissions. It was noted that the supply of manpower was taxed for a period when the law did not provide for such taxation. Therefore, the Commissioner (Appeals) concluded that the respondent should not be asked to pay taxes under the category of Manpower Recruitment Agency.

3. Regarding Cargo Handling services, the Appellate Authority reviewed the case record and found that the activities carried out by the laborers were limited to loading and unloading goods within the factory premises. There was no evidence to prove that the goods were handled beyond the factory. As a result, the Commissioner (Appeals) discharged the respondent from the tax liability under the Cargo Handling service category. The Tribunal upheld this decision, noting the absence of concrete evidence to hold otherwise and dismissed the Revenue's appeal accordingly.