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TMI Blog2023 (5) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... ment etc. to M/s. Godrej Household Products Ltd. (M/s. Godrej in short), who are engaged in the manufacture of mosquito repellent coils, proposing demand of service tax along with interest and also imposing penalties. On adjudication of this SCN, the Asst. Commissioner of Customs, Central Excise and Service Tax, Karaikal, confirmed the demand of service tax of Rs. 1,63,523/- along with interest under Section 73 (1) of the Finance Act, 1994, for the period 2010-2011 (upto 10/2010) and also imposed penalties under Section 77 & 78 of the Finance act, vide O-in-O No.14/2011-ST dated 22.11.2011. On filing appeal to the Commissioner of CCE & ST, Trichy, he upheld the order of the Original authority and rejected the appeal. Hence, the appellant is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es @ Rs.7 per person is being paid. Even if service tax is payable, the same is payable only on the value charged for the service ie. Service charges and not including the reimbursement of wages paid. The appellant relied on the judgment of the Hon'ble High Court of Delhi, in the case of Intercontinental Consultants and Technocrats Pvt. Ltd. Vs. UOI - 2012-TIOL-966-HC Del, wherein Rule 5 of the Service Tax (Determination of Value) Rules, 2006, requiring payment of service tax even on reimbursement of expenses, has been struck down as ultra vires the provisions of the Finance Act. It has been argued that service tax demand can be made only on an amount of Rs. 84,027/- which represents the service charges received by the appellant during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urangabad Vs. Shri Samarth Sevabhai Trust 2016 (41) STR 806 (Bom.) iii) Ritesh Enterprises Vs. CCE, Bangalore 2010 (18) STR 17 (Tri.-Bang.) 3. Learned DR Shri M. Ambe representing the Revenue has contended that the services rendered by the appellant are appropriately classifiable as Manpower Recruitment or supply Agency service. Reiterating the findings of the Lower authorities, he has contended that the appellant was paid on the basis of number of people supplied to M/s. Godrej that the services rendered by the appellant are covered under manpower supply agency service and the demands are sustainable. 4. We have considered the submissions made by both the sides. 5.1 We have carefully perused the agreement entered into by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... workmen in respect of injuries and for any, claims arising under the Workmen Compensation Act 1936. The contractor shall from time to time, keep the said policy renewed and furnish a copy of the same to the Factory In-charge/Manager. 12) The contractor shall ensure that the wages are paid to the personnel in the presence of a company representative and for the said purpose, shall keep the company informed well in advance the date, time and place of payment of wages/salaries. ................... 15) The contractor shall keep the company indemnified against all claims arising out of this agreement. 16) In consideration of the contractor providing services as defined in Annexure-A, the company shall pay to the contractor monthly servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PM and other materials from the parties. Loading of finished goods and other materials as required by the management to do. 2. Housekeeping in and around factory, maintaining the garden and canteen inside the factory and maintaining the machineries and other equipment. The wage for the quantum of the work done as given below: WAGES PER SHT BASIC OTHER ALL Ladies and Gents 100 100 0 Production incentive will be given in proportionate basis if more than 14 cases has been packed by a manpower in 8 hrs. shift. Service charge will be given rupees 7/- per manpower for 8 hrs. shift. One of the copy of the Agent bills also extracted below for reference: TOWARDS AGENT CHARES FOR THE MONTH OF JULY 2010 (COIL 7) Month Rate Nos Amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of the wages paid by the appellant plus pre-determined commission. Even the scrutiny of the bill raised by the appellant indicates that the charges are on the basis of number of workmen deployed. 5.5 At this juncture, we find it is necessary to refer to the decision of the Hon'ble Supreme Court in the case of Super Poly Fabriks Ltd. Vs. CCE, Punjab - 2008 (10) STR 545 (S.C.), which laid down the ratio as under:- "There cannot be any doubt whatsoever that a document has to be read as a whole. The purport and object with which the parties thereto entered into a contract ought to be ascertained only from the terms and conditions thereof. Neither the nomenclature of the document nor any particular activity undertaken by the part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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