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TMI Blog2023 (10) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... arte. As the appeal pertains to the year 2012 we have taken up the same and perused the documents with the help of Learned AR. In this case, the allegation is that the Appellant, who is registered as a Society, has provided Manpower Recruitment or Supply Agency services to ONGC during the period 2010-11. After due process, the Adjudicating Authority has confirmed the demand. Being aggrieved, the Appellant is before the Tribunal. 2. On going through the grounds of appeal, it is seen that the appellant has taken a similar ground that they are a Society registered under Andhra Pradesh Co-operatives Societies Act 1964. Therefore, they are not required to pay any Service Tax for the Manpower Supply Services rendered by them. Learned AR submits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y him, to another person for a consideration. Employer- Employee relationship in such case exists between the agency and the individual and between the individual and the person who uses the services of the individual. Such cases are covered within the scope of the definition of the taxable service [section 65(105)(k)] and, since they act as supply agency, they fall within the definition of 'manpower recruitment or supply agency' [section 65(68)] and are liable to service tax" . In the present case also, it is observed that the contract workers payrolls are being maintained by the service provider and statutory obligations of the contract workers are being discharged by the service provider only. M/s ONGC is paying the wages along with stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in saying that 'they are being singled out' is that M/s ONGC, being a party to the service agreement in question, should have been put on notice along with them. Service Tax is an indirect tax where under the provisions of the Finance Act, 1994, - except in few specified cases, not applicable to the present case - M/s GVLCCS who are the service providers in the case are liable to pay service tax. It cannot be argued that M/s ONGC who are the service receivers and statutorily not liable to pay tax to the government exchequer should be put to notice. As per the existing statutory provisions M/s GVLCCS are liable to pay service tax on the services rendered by them and accordingly the notice was issued to them. 18. The service provider a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion can include any business or professional establishment and the "commercial person" would include all concerns connected with commerce carrying on trade or profession or any kind of commercial activities and includes a company." 19. A society is an association of individuals for common ends i.e. especially, an organized group working together or periodically meeting because of common interests, beliefs, or profession and accordingly is an association of individuals. Section 3(42) of the General Clauses Act, 1897 defines that a "person" "shall include any company or association or body of individuals, whether incorporated or not". In the present case, the co-operative society being a registered body and a juristic person, it would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub clauses (ii) and (iii) are inclusive of all existing taxes, duties, cesses or other levies whatsoever payable by the society for or in connection with the provision of the said services. In para (v) it is provided that if any new tax is imposed with respect to the services provided by society after effective date, such new tax shall be reimbursed by ONGC to society in addition to the price of the services as specified in sub clauses (ii) and (iii) hereof above. In clause XXIX of the contract it is provided that the responsibility of the payment of all taxes is with the society only. The above clauses of the agreement clearly speak about the responsibility of the service provider to pay all the taxes to the government. Thus in view of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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