2019 (2) TMI 1179 – CESTAT CHENNAI – TMI – Classification of services – Manpower Recruitment and supply services or not – charges received in relation to the supply of labour to M/s. Caltex Gas India (P) Ltd. – Held that:- The work is done as per the work orders issued by M/s. Caltex Gas India (P) Ltd. So also the payment is made in respect of each work order realized by M/s. Caltex Gas India (P) Ltd. from time to time. There is no whisper in the agreement that the payment has to be based on the number of persons or the man hours engaged for doing the work – Further, the workers who are taken by the appellant for executing the work order are under the control of the appellant and not under M/s. Caltex Gas India (P) Ltd. The agreement is very much evident to establish that the nature of activity does not fall within the definition of manpower recruitment and supply service – demand set aside – appeal allowed – decided in favor of appellant. – Appeal No. ST/40610/2013 – Final Order No.
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a (P) Ltd. under the category of Manpower Recruitment of Supply Service. After due process of law, the original authority confirmed the demand, interest and also imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, Shri S. Ramachandran, ld. consultant submitted that the appellant in this case is contesting the demand of service tax, interest and penalties imposed thereon with regard to the alleged services provided to M/s. Caltex Gas India (P) Ltd. He submitted as per the agreement, there was no requirement on the part of the appellant to supply manpower and in fact the agreement with M/s. Caltex Gas India (P) Ltd. was for executing work orders or job works. For this reason, the appellant has not discharged the service tax for the activity in regard to M/s. Caltex Gas India (P) Ltd. He referred to the work order dated 23.8.2007 as well as to job details and argued that the work order was for filling of cylinders etc. In
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as under:- 2.1.2 It is the intention of the parties that this agreement applies to the furnishing of all services by SUPLIER or its distributors to CALTEX for mutually beneficially relationship. Nothing herein shall obligate CALTEX to order any Services from SUPPLIER. There are no minimum or maximum volume obligations or exclusivity obligations under this Agreement. CALTEX accepts no responsibility for items stocked by SUPPLIER. 2.1.3 Provision of Services in the correct quantity, at the correct time (as per delivery schedule issued to SUPPLIER in the Work Orders of CALTEX) with the correct quality level as specified and at the correct price (as mutually agreed) are the basic fundamentals of this Agreement. 3.1 SUPPLIER shall provide the Services within the time limit specified by CALTEX, on supplier s receipt of a clean work order. A work order must be clean before it is finalized into a firm supply schedule. A clean work order is one where the specifications and commercial requireme
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