9911796707
TMI Blog2013 (3) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... oviding service under this category and on such reasoning a show-cause notice was issued demanding service tax for the period October 2005 to September 2010 which was adjudicated and confirming a demand of ₹ 5,23,57,493/- along with interest and penalties. 2. The counsel for the applicant submits that the labourers employed for cutting of cane were not their employees and such labourers were not on their rolls. They did not pay any ESI benefit to the persons concerned. According to him, the labourers in this sector are organized and mobilizing them is sometimes difficult for small farmers. Therefore, the applicant acted as intermediary for mobilizing the services of certain gang of labourers who do cane cutting. The charges for cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MT from the amounts to be paid to the labourers to retain the labourers with the applicant. Thus the entire control over the labourers is with the applicant. The learned AR submits that it is not necessary that there is no criterion in the definition of manpower supply agency regarding employer-employee relationship and this argument is totally extraneous to the definition of the service at section 65 (68) or section 65 (105) (k). 6. He further stress that the definition at 65 (68) would cover any agency engaged in any activity directly or indirectly in supply of manpower. The applicant are doing many activities which are directly related to supply of manpower or at least indirectly but very proximately connected with supply of laboure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and routing payments from farmers to labourer ? some of it as advance and some of it as payment after work done. There is no finding that the applicant is getting any money from this activity, though there is a reference to some money retained from payment to be made to the labourers. It is not clear whether the amount is appropriated as consideration for this activity. That being the case prima facie it appears that no taxable service is rendered because having a database of labourers or routing of the labourers or payments for the labourersmay not be sufficient to make the applicant a manpower supply agency and also for the reason that for a service to be taxable at least there should be some part of the value of service retained by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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