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TMI Blog2014 (3) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 65(68), in the absence of employer employee relationship the payment for the labourers cannot be considered to be paid to the applicant. The payment is only routed through them. As per section 67 of the Finance Act 1994, service tax can be demanded only on consideration received by the service provider. The amount of ₹ 4/- PMT charged appears to be for transportation of the employees from one site to the other and not towards consideration of services rendered by the applicant - Following decision of the case of M/s. Thiru Arroraran Sugars Ltd. [2013 (9) TMI 951 - CESTAT MUMBAI] - Stay granted. - ST/00526/2011 & ST/40938/2013 - Misc. Order Nos. 42043-42044/2013 - Dated:- 19-8-2013 - P K Das And Mathew John, JJ. For the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the labourers. This cannot be interpreted to mean that the labourers were on their rolls. The rate of wages cutting was fixed by consultations among all the parties and farmer agreed that the labour charges will be paid by the applicant at the time of settling the payment of the price for sugar cane bought from the farmer. The applicant deducts the cutting charges from the sale price of sugar cane and pays to the labourers. In the entire process, the applicant is not retaining any consideration and thus there is no consideration for providing taxable service, if any, provided for mustering labourers. Therefore, considering the fact that the persons doing the work were not their employees and the fact that they did not receive any consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inasmuch as the applicant has been providing advance payments to these farmers. Besides, the applicant has some type of hold over the labourers because of which they are able to make the labourers available as desired by the farmers. He submits that the applicant will fit into the definition of manpower supply agency as defined in Section 65(68) of the Finance Act, 1994 which reads as under: manpower recruitment or supply agency means any person engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to any other person 5. Considered arguments on both sides. Prima facie, we are of the view that the applicant is not engaged in the business of suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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