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TMI Blog2023 (4) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... vers and apparently the department did not consider the other terms of the contract. The terms of the contract were not for supply of the drivers. The appellants had to undertake the transportation of tractors from premises of Punjab Tractors Ltd to their dealers and in the bargain they may appoint drivers for the work. Appellants were required to take all responsibilities on the way - even where the wages of the workers or the employees supplied by the agency are paid by the agency, the liability to pay the service tax would be under said agency and not on the clients. In other words, the Circular clarifies that mere payment of wages by the manpower recruitment or supply agency does not take away their status. However, as far as the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the drivers appointed by the appellants; consideration was paid to the appellants on the basis of the rates fixed on per kilometer basis; the appellants were required to ensure that the tractors were delivered in proper and good condition. The department was of the opinion that the service rendered by the appellants was squarely covered by Manpower Supply Agency Service ; accordingly, the show cause notices were issued to the appellants and were confirmed by the above cited Orders-in-Original. 3. Ms. Krati Singh, Learned Counsel, appearing on behalf of the appellant places the definition of Manpower Recruitment or Supply Agency and submits that the work undertaken by the appellants is not supply of manpower; the contract itself wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST, Bhavnagar 2022 (12) TMI 468 CESTAT Ahmedabad (4) M. Arul Prakasam others vs. CGST CE, Chennai - 2021 (8) TMI 1063 CESTAT Chennai (5) M/s Beta Enterprises vs. CGST CE, Madurai 2021 (11) TMI 897 CESTAT Chennai (6) M/s Fire Controls vs. CCE ST, Mysore 2019 (8) TMI 1028 CESTAT Bangalore (7) Tiwari Services vs. CCE, Aurangabad 2019 (4) TMI 1917 CESTAT Mumbai (8) Deomogra Ustodani Vahatuk Sahakari Sanstha Ltd vs. CCE, Nashik 2019 (4) TMI 589 CESTAT Mumbai (9) G. Ramakrishnan others vs. CCE ST, Madurai 2019 (3) TMI 42 CESTAT Chennai (10) Cauvery Enterprises vs. CCE ST, Madurai 2018 (8) TMI 898 CESTAT Chennai (11) M/s Flotech Consultant Services Pvt Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge spot survey, lodge FIR and to send related documents to M/s Punjab Tractors Ltd; appellants to get tractors released from the Courts and handover the same to the dealers. it shall be the appellants responsibility to comply with all statutory formalities on the way like Rahadari, clearance of Sales Tax forms etc. 6.2 A perusal of the above conditions indicates that the terms of the contract were not for supply of the drivers. The appellants had to undertake the transportation of tractors from premises of Punjab Tractors Ltd to their dealers and in the bargain they may appoint drivers for the work. Appellants were required to take all responsibilities on the way. The Circular cited by the Learned adjudicating authority clarifies a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms of the contract are very clear and the appellants have rendered the job assigned by Punjab Tractors Ltd and did not at all supply any manpower. 6.4 We find that the Tribunal in the case of Talala Taluka Sahakari Khand Udyog Mandali Limited others vs. CCE ST, Bhavnagar reported in 2022 (12) TMI 468 CESTAT AHMEDABAD has observed as under : 5. We have carefully considered the submissions made by both the sides and perused the record. We find that the fact is not in dispute that the appellants have no arrangement for supply of manpower for harvesting and transportation of sugarcane for supply to sugar mills. It is also the fact that charges were calculated on per ton basis therefore, the number of manpower, man-days or ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e should be considered as part of manufacture as per Section 2(f) of the Central Excise Act. Packing of goods per se may not be manufacture in itself but when it is done along with the manufacture in the factory of the manufacturer, packing is included in the process of manufacture. On the entire value of the goods including the cost of packing, M/s. L T is paying Central Excise duty. In view of the above, we find that the demand on the appellant under the head of Manpower Recruitment or Supply Agency Service cannot survive by any stretch of imagination. In view of the above, the demand in the impugned order needs to be set aside and we do so. Consequentially, the interest and penalties also get set aside. 6.5 In view of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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