Syal & Associates Vs Commissioner of Central Excise, Chandigarh (CESTAT Chandigarh)
Brief facts of the case are that the appellants are engaged in the business of transportation of tractors by driving the tractors from the factory of M/s Punjab Tractors Ltd to the premises of dealers. As per the agreement, the tractors were to be driven by the drivers appointed by the appellants; consideration was paid to the appellants on the basis of the rates fixed on per kilometer basis; the appellants were required to ensure that the tractors were delivered in proper and good condition. The department was of the opinion that the service rendered by the appellants was squarely covered by ‘Manpower Supply Agency Service’; accordingly, the show cause notices were issued to the appellants and were confirmed by the above cited Orders-in-Original.
On-going through the contract, we find that a consideration for the job undertaken by the appellants is on the basis of per kilometer. Letter dated 02.01.2004 written by Punjab Tractors Ltd to the appellants indicates the same. The said letter inter alia requests the appellants to organize drivers as required. It appears that the department has understood the same to be request for supply of the drivers and apparently the department did not consider the other terms of the contract such as
