2013 (10) TMI 906 - AT - Service Tax

Nature of sercvies - Man power supply or job work - Grinding of coffee beans and thereafter mixing it with chicory and packing of such coffee powder - Held that - There is no reason to understand Labour Bill as bill for labourers. The primary understanding should be as bill for labour done which is the argument of the applicant. So Prima facie, we feel that this is a case of job work rather than supply of man power. Therefore, we waive the requirement of pre-deposit of dues arising from the impugned order for admission of appeal. There shall be stay on collection of such dues during the pendency of the appeal - stay granted.

Summary

Issues:
Interpretation of service rendered as Man Power Supply or job work.

Analysis:
The judgment revolves around the dispute regarding the nature of service provided by the applicant, who is engaged in grinding coffee beans, mixing them with chicory, and packing the coffee powder at the premises of another company. The revenue authorities contended that the service was akin to Man Power Supply, while the applicant argued that it constituted job work.

Upon reviewing the statements of the applicant's proprietor and the Senior Manager of the company where the work was carried out, it was noted that the applicant's responsibility was specific to certain tasks and not merely supplying labor under supervision. Additionally, the bills submitted by the applicant to the company were based on the quantity of coffee powder packed, indicating a job work arrangement rather than a labor supply service.

The Revenue's representative pointed out that the bills were labeled as Labor Bills, suggesting they were for the supply of laborers. However, the tribunal disagreed, stating that the primary interpretation should be that the bills were for the labor performed, supporting the applicant's argument that it was a case of job work rather than a supply of manpower.

Consequently, the tribunal ruled in favor of the applicant, waiving the pre-deposit requirement of dues from the impugned order for the admission of appeal. It was further decided that there would be a stay on the collection of such dues during the appeal's pendency. The judgment was dictated and pronounced in an open court session by the judges, Shri. P.K. Das and Shri. Mathew John.