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TMI Blog2024 (5) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... hansh Metals for under taking certain activities on contract basis such as a loading and unloading of brass scrap Breaking , cutting, and shorting of brass scrap, casting of brass scrap (foundry) and processing and packing of brass rods /sections after manufacturing of sale etc. As per the terms of the contract /agreements the appellants were engaged to carry out production / processing of the goods on behalf of the principles namely M/s. Senor Metal and Rajhansh Metals. The production of brass articles undertaken by the appellants were used further for manufacture of final finished products and same were cleared on payment of duty by the principal manufacture. As per the contracts / agreements the appellant job workers' raised periodic invoices for labour charges on the basis of total quantum of the work performed by them, at the manufacturing premises of the principal manufacturer. 2. The appellants for execution of the above mentioned works, had employed skilled and unskilled laborers at the factory premises of their principal manufacturers, the personnel so employed by the appellant job workers' always remained employees of the appellant job workers they were also paid by thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice recipient has paid the consideration to the appellant for the work performed by the employees of the appellant based on quantum of work performed. It has further been stressed that the appellant has raised invoices on the service recipient on monthly basis as per the quantum of work performed by them in the factory of service recipient. It has further been contended that the appellant were under bonafide belief that service provided by them to service recipient namely M / s Senor Metals Pvt. Limited were classifiable under taxable category of Business Auxiliary Service under the clause "production and processing of goods for, or on behalf of the client" and this category i.e. production or processing of goods has specifically been excluded/ exempted from levy of service tax. It was argued that because of this reason the appellant did not get themselves registered under the provisions of Finance Act, 1994. It has further been submitted that the activity undertaken by the appellant does not fall under the service category of Manpower Recruitment or Supply Agency Service as the appellant has not provided any manpower to M/s. Senor Metals Pvt. Limited manpower undertaking manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Patel 2012 (25) STR 471 (Tri. Amd.), Jubilant Industries Limited 2013 (31) STR 181 (Tri. Del.) and Shiv Narayan Bansal 2013 (31) STR 747 held that contract between the appellant and M / s Nirma Limited is of contract manufacturing hence demand under manpower supply cannot be made. Concluding and operating portion of the order is reproduced below: From the above judgments the issue in hand is settled that when the contract between the service provider and service recipient is admittedly of contract manufacturing in such case demand under man power supply cannot be made. The appellant have vehemently argued on Revenue neutral situation on the ground that if at all the appellant is liable to pay service tax the same is available as Cenvat credit to the service recipient i.e. M / s Nirma Ltd. In this regard, he also submitted the details of payment of excise duty of M / s Nirma Ltd from PUA /cash. This prima facie show that it is a case of Revenue neutral and by not paying the service tax by the appellant the Government Exchequer is not at any loss, however, since, we have already decided the issue on merit, we are not giving our concluding opinion on Revenue Neutral position. The is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the facilities 1084/2015-DB provided by the service recipient and the charges is also per piece basis. The entire control of workers deputed by the appellant for the job work is with the appellant only and the service recipient has no obligation as regards the number of workers, man-hour etc. for the job assigned to the appellant. In these terms of contract, we are of the clear view that contract is for job work carried out by the appellant for the service recipient. Therefore, there is no activity of providing the service of Manpower Recruitment or Supply Agency Service. The judgment relied upon by the appellant are directly on the issue. In the case of Sureel Enterprise Pvt. Limited vs. CCE & ST., Ahmedabad 2019 (10) TMI 1245-CESTAT Ahmedabad wherein the similar facts are prevailing inasmuch as the service provider provided the" 4.6 In view of the above decisions on the identical issue in hand and our observation made herein above, we are of the clear view that the appellant have not provided the 'Manpower Recruitment or Supply Agency Services'. Therefore, the demand made under the said category is not sustainable." Similarly this Tribunal in the case of Sureel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order is not sustainable. Hence, the same is set aside. The appeals are allowed with consequential relief, if any, in accordance with low. 6. In view of above decision of the Tribunal in the appellant's own case on the same issue, the issue in the present case is no longer res integra. The only difference in the present case and the case decided supra is the difference of period. However, there is no change in the facts and the law point, therefore, the Tribunal's decision given by Order dated 18.10.2019 is squarely applicable in the present case. Accordingly, the impugned orders are set aside. The appeals are allowed." 8. Following the above decisions of this Tribunal, we hold that work undertaken by the appellant do not fall under the service category of Manpower Recruitment or Supply Agency Service and therefore, the impugned orders are without any merit. Accordingly, we set aside the same." 4.5 Same view was expressed by this Tribunal in another case of Nishkarsh Industrial Services, wherein this Tribunal has passed the following order 5. In view of the above we hold that service provided by the appellants does not fall under the category of Manpower ..... X X X X Extracts X X X X X X X X Extracts X X X X
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