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TMI Blog2013 (2) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... to the sugar factory for the transportation of sugarcane from the farmers' fields to the recipient sugar factory. Thus the services are directly rendered by the farmers and the transporters to the sugar factory. For these services rendered, the payments are made by the sugar factory on the basis of tonnage of sugarcane received and the amounts are routed through the appellant-Trust for crediting to the bank accounts of the farmers and the transporters. As per clause (68) of section 65 of the Finance Act, 1994 ‘Manpower Recruitment and Supply Agency' means the person has to provide the service with regard to supply of manpower but as in the instant case, when the farmers and the transporters have entered into agreements directly with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esting of sugar cane and the truck owners undertake transportation of these from the farmers' fields to the factory of M/s Dudhganga Vedganga Sahakari Sakar Karkhana Limited, Bidri, Kolhapur. The bills for the service rendered to the sugar factory is routed through the Sanstha and the payment is received from the sugar factory to the Sanstha for further distribution to the farmers and the transporters. The department was of the view that the activity undertaken by the appellant falls under the category of Manpower Recruitment and Supply Services' and accordingly a demand for the services rendered was made on the appellant during the period 01/04/2005 to 26/04/2008 demanding a service tax of Rs.2,21,20,788/- vide show cause notice dated 19/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments through the appellant-Trust and they do not retain any amount and the amounts are straightaway credited to the bank where the farmers and the transporters hold accounts. In fact the appellant Trust does not hold any bank account at all and they had not undertaken any banking transaction during the impugned period. Therefore, the allegation that the appellant-Trust supplied labour to the sugar factory is not borne out from the documents available on record. 4. The learned AR appearing for the Revenue, on the other hand, reiterates the findings of the adjudicating authority. 5. We have carefully considered the submissions made by both the sides. From the agreements entered into between the farmers and the transporters with the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een the farmer and the sugar factory, and, the transporter and the sugar factory. The appellant-Trust only acts as a facilitator. Similarly, the payments for the services rendered, though received by the Trust by way of cheques are directly deposited into the accounts of the farmers and transporters and the appellant-Trust does not get any consideration nor do they have any bank account for receiving any money. In view of this factual position, we find that the appellant has made out a strong case in his favour for grant of interim stay. 6. Accordingly, we grant unconditional waiver from pre-deposit of the dues adjudged against the appellant and stay recovery thereof during the pendency of the appeal. (Operative part pronounced in Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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