Service tax not payable on MRSAS as contract is for performance of work and not supply of manpower

A. Natarajan Vs Commissioner of GST & Central Excise (CESTAT Chennai) CESTAT Chennai held that contract is for performance of the work and not for supply of manpower. Further, payments are for the works executed on tonnage basis/ unit basis and not on man hours or per person basis. Accordingly, service tax not payable on ‘Manpower Recruitment or Supply Agency Services’ (MRSAS). Facts- The appellant was registered under the category of “Manpower Recruitment or Supply Agency Service” (MRSAS). It appeared to the department that the appellant provided MRSAS for the work of water coolin...