COMMISSIONER OF CUSTOMS, CENTRAL EXCISE AND SERVICE TAX Vs. GODAVARI KHORE CANE TRANSPORT COMPANY PVT. LTD.

JUDGEMENT

(1.) This appeal challenges the judgment and order passed by the Customs Excise & Service Tax Appellate Tribunal, Mumbai, holding that the service in question was not taxable on the date when tax was demanded. The facts are very simple and can be narrated as under;-

(2.) The respondent is a private limited company, who entered into a contract with one M/s. Kopargaon Sahakari Sakhar Karkhana Limited, Kolpewadi, Tq. Kopargaon, District Ahmednagar, for providing certain services. The agreement between these two parties was in essence to harvest the sugarcane of the members of the Karkhana from their fields, load them in various vehicles and deliver them at factory site. For these services, the respondent was to get charges on tonnage basis. This work, on the face of it, clearly involves manpower. The respondent, admittedly, engaged number of labour for harvesting the sugarcane, loading it in vehicle and unloading it at factory site. During the course of work, the respondent on one hand and the sugar factory on the other, exchanged number of documents which showed that the sugar factory specifically paid certain amounts towards labour charges, harvesting charges and transportation charges etc. At some point of time, the sugar factory even paid certain amounts towards Service Tax. Having regard to these facts, a notice was issued by the appellant on 16.10.2008 to show cause as to why they should not pay service tax as per provisions of Section 65(105)(k) of the Finance Act, 1994, which was made effective from 16.06.2005. The notice specifically mentioned that the services provided by the respondent were Manpower Recruitment or Supply Agency Services. The question between the parties was whether the services would fall within the definition of Manpower Recruitment or Supply Agency Services. The definition of this term is mentioned in Clause 105(k) of Section 65 of Finance Act. It reads as under:

(3.) The term "Manpower Recruitment or Supply Agency" is separately defined in Clause 68 of Section 65, which reads as under: