Expenses charged to farmers for harvesting and transportation of sugarcane not liable to service tax

Talala Taluka Sahakari Khand Udyog Mandali Limited Vs Commissioner of Central Excise (CESTAT Ahmedabad)

CESTAT Ahmedabad held that expenses charged to the farmers towards harvesting and transportation of sugarcane is not chargeable to service tax under Manpower Recruitment and Supply Agency Services.

Facts-

The appellant has arrangement with the farmers for harvesting and transportation of sugarcane to sugar mills. The appellants while paying the cost of sugarcane to the farmers they deduct the expenses of harvesting and transportation of sugarcane. The case of the department is that such expenses charged to the farmers is liable to service tax under the category of ‘Manpower Recruitment and Supply Agency Services’, accordingly the service tax demand was confirmed. Being aggrieved, the appellant filed the present appeals.

Conclusion-

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