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TMI Blog2023 (12) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... act which includes the activity of warping, weaving, mending, knitting and packaging of grey and finished fabrics and texturizing, twisting, reeling, coning, rebinding and packing of grey and dyed finished yarn for different qualities - From the nature of job work and the service charge therefore it is clear that the contract remotely does not indicate that the activity of the appellant is of Manpower supply or recruitment service. As per the contract the appellant is supposed to carry out various textile processing activities and for which the payment is fixed on per metre basis irrespective of the number of manpower is deputed for the said job work. - It is observed that the appellant have fulfilled all terms and conditions as prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Valson Industries Vapi in their factory under the proprietorship firm namely M/S. Singh Labour of proprietorship of Sheshnath B Singh. 1.1 Apart from the above activities under the proprietorship of the same proprietor Shri Sheshnath B Singh through proprietorship firm M/S. Singh Roadways the appellant has been providing transportation service to other transporter for the goods carriage. The case of the department is that as regard the various textile activities since the appellant accounted for the service charges under the head of labour charges and not in the processing charges the appellant is liable for service tax under the manpower and recruitment service. As regard the trucks given on hiring basis to other transporter the dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10) GSTL 462 (Tri.Del) • Jayesh C Patel - Final order No. A/12552-12553/2021 dated 29.11.2021 (Tri. Ahmd) • M/s Satish Kumar & Co. - Final Order No. A/86227/2018 dated 26.04.2018. 3. Shri Kalpesh P Shah, Learned Assistant Commissioner appearing on behalf of the Revenue reiterates the finding of the impugned order. 4. We have carefully considered the submission made by both sides and perused the records. As regard the issue that various activities of textile processing of the appellant in the factory of the service recipient whether classifiable under Manpower Recruitment or Supply Agency Service we find that as per the contract with Valson Industries the salient terms of the contract is that the contract is a job work contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of goods, and thus would fall under negative list [section 66D (f)] and hence would not attract service tax. 2. The matter has been examined. The nature of manpower supply service is quite distinct from the service of job work. The essential characteristics of manpower supply service are that the supplier provides manpower which is at the disposal and temporarily under effective control of the service recipient during the period of contract. Service provider's accountability is only to the extent and quality of manpower. Deployment of manpower normally rests with the service recipient. The value of service has a direct correlation to manpower deployed, i.e., manpower deployed multiplied by the rate. In other words, manpower supplier wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... piece basis, depending upon item and style; e. Service provider is liable to compensate the service recipient if the work is not as per the standard norm; f. In case the work is executed by service provider at the site of service recipient, the service provider would indemnify the service receiver of any loss to inputs and infrastructure g. The employee deployed for the assigned job would be under the control/supervision of the service provider. h. Payment would be at agreed piece rate basis. Plain reading of this agreement makes it an agreement of job work applying the criterion outline in para 2 above. 4. However, every job work is not covered under the negative list. If the job work involves a process on which duties of excis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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