Classification of services – Section 65(68) of the Finance Act, 1994 – Man power recruitment and supply service – Adjudicating authority raised demand of service tax from assessee on ground that it was providing Man Power Recruitment and supply service to BHEL . It was noted from perusal of contracts that works contracted by BHEL to assessee were ‘Material Handling Contract’ and ‘Mobile Crane Contract’ .
Further, work schedule rates and approximate quantum of work to be handled given in annexures to contract indicated that rates were per M.T. or per Sq. mtr. etc., but not on per man power supplied basis , It was also undisputed that assessee supplied labourers to actualise contracted work, however, such man power was not at disposal or effective control of service recipient during period of contract, but such control was still with assessee. Whether in aforesaid circumstances, nature of services provided by assessee could not be brought within fold of ‘Man Power Supply Service’ – Held, yes – Whether, therefore, impugned demand of service tax was to be set aside – Held, yes
Citation : [2018] 96 taxmann.com 103 (Chennai – CESTAT)