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Facts
The Appellant had contract on a firm rate basis for welding and gas cutting on various locations of NTPC. The department contended that the control is exercised by NTPC and welding machine, electricity and gas required was given by them and the Appellant was required to supply manpower and accordingly liable under “Manpower Recruitment and Supply Agency Service”. Further, a demand was also raised on the cleaning services.
Held
Relying on the decision of the Bombay High Court in the case of Commissioner of Customs & Central Excise & Service Tax vs. Godavari Khore Cane Transport Company P. Ltd [2015-TIOL-253-HC-MUM-ST], the Tribunal held that work order does not indicate supply only of the manpower, on the contrary, scope of work indicates a specific job of welding and gas cutting to be done. Accordingly the liability under ‘Manpower Recruitment and Supply Agency” is set aside. As regards cleaning services, without contesting service tax along with interest was discharged. Observing a genuine misunderstanding, the Court dropped the penalty by invoking section 80 of the Finance Act, 1994.
