9911796707
TMI Blog2018 (7) TMI 1532X X X X Extracts X X X X X X X X Extracts X X X X ..... der-in-Original or in the grounds of appeal, the department clarified as to which of the sub clauses (i) to (vi) is relevant. Unless this is specified, it cannot be examined whether the services provided by the respondent are incidental or auxiliary to that category - the services rendered by the respondent cannot be classified as “Business Auxiliary Service”. Appeal dismissed - decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... ursement. No separate bonus will be paid to the Service Provider. Bonus element is Considered while deciding rate/ton and Service Provider has to pay bonus As per attendance record. Sd/- xx xx xx P.V. Rama Rao CONTRACTOR Sd/- xx xx xx Harinarayanan A Manager (Finishing House)" B) Second Agreement: "ANNEXURE - A To deploy unskilled casual labour for carrying out the below jobs: To collect and transport loose broke that gets generated while rewinding. To cut the core pipes into desired size and to carry them onto the rewinder. To apply joint to the paper reel. To push the paper reels on to the sheeter unwind stands. To carry wooden pallets and place them on sheeter. To collect the broke generated from sheeters and place it on pulper. To collect removed core pipes from sheerter to carry tem to the core cutting area. To carry wooden pallet top and place it on the pallet. To carry the packing material and other consumables. To ensure house keeping etc. ANNEXURE - B The rate of payment for carrying out the job (Manpower supply) is ₹ 111.43/man day for unskilled labour. The number of persons deployed will be taken from the daily casual attendance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al before the Commissioner (Appeals) who allowed the appeal and set aside the impugned order on the following grounds: a) Section 65 (19) defines "Business Auxiliary Service" as follows: "Business Auxiliary Service" means any service in relation to,- (i) Promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) Promotion or marketing of service provided by the client; or (iii) Any customer care service provided on behalf of the client; or (iv) Procurement of goods or services, which are inputs for the client; or (v) Production or processing of goods for, or on behalf of the client; or (vi) Provision of service on behalf of the client; or (vii) A service incidental or auxiliary to any activity specified in subclauses (i) to (vii), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision and includes services as a commission agent, but does not include any activity that amounts to "manufacture" within the meaning of clause (f) of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vi) such as billing, issue or collection etc. This is only an illustrative list of services and not an exhaustive list. Therefore, the order of Commissioner (Appeals) saying that the services are not classifiable under clauses (i) to (vii) of Business Auxiliary Service is not correct. 6. The Commissioner (Appeals) also erred in saying that the extended period of demand is not sustainable. But for the initiation of the departmental officers, the nature of the services would have gone unnoticed causing loss to the Government exchequer. They had not taken registration and also not filed returns for the amount during the relevant period. Accordingly, the demand as well as penalties sustain and the order of Commissioner (Appeals) is liable to be set aside. 7. The issue to be decided by us is whether the provision of services by way of supplying manpower under the aforesaid two types of contract by the respondent amount to business auxiliary services or simply manpower supply services. The respondent classified them as manpower supply services and paid the service tax accordingly. The first type of agreement states that the scope of work under this contract includes handling of the "lo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
