Loading and Unloading Labour Supply Not Taxable as Manpower Recruitment Service: CESTAT Chandigarh

Parwindra Enterprises Vs Commissioner of Service Tax (CESTAT Chandigarh)

The appeal challenged the Order-in-Appeal dated 23.12.2013 by which the Commissioner (Appeals) confirmed a service tax demand of Rs. 81,282, along with interest, an equal penalty under Section 78 of the Finance Act, and a penalty of Rs. 5,000 under Section 77.

The appellant had entered into a contract dated 31.05.2006 with M/s Markfed Agro Chemicals for supplying labour on a daily basis and for loading and unloading of trucks/LCVs for the period 01.06.2006 to 31.05.2007. A show cause notice dated 20.04.2011 sought recovery of Rs. 2,72,932 in service tax for the period 01.07.2006 to 30.11.2007, alleging that the appellant had provided Manpower Recruitment Agency Services. After adjudication, the Assistant Commissioner, by Order-in-Original dated 31.12.2012, confirmed service tax of Rs. 2,14,687, together with interest and penalties under Sections 77 and 78 of the Finance Act, 1994. On appeal, the Commissioner (Appeals) partly allowed the appeal but sustained a demand of Rs. 81,282 with interest and penalties, leading to the present appeal before the Tribunal.

As the appellant expressed inability to engage legal representation owing to financial hardship, the Bench requested Ms. Krati Singh, Advocate, to act as amicus curiae, which she accepted.