Page 81 - GSTL_23rd April 2020_Vol 35_Part 4

2020 ] ADITYA ENTERPRISES v. COMMISSIONER OF CUS. & C. EX., MEERUT-II 407
[Order per : Anil Choudhary, Member (J)]. - The appellant, M/s. Aditya
Enterprises - Proprietor, Shri Jitendra Kumar Sahni was doing various jobs since
2006-2007 in the factory premises of Century Pulp and Paper, a unit of Century
Textiles and Industries Ltd. (“CPP” in short) mainly in the nature of handling of
wood and maintaining cleanliness in specific parts of the factory, maintenance of
Hydra Pick and carry crane, etc. Such jobs were executed by deploying labour by
the appellant, for which they raised periodical invoices based on the quantum of
work handled and not based on the number of workers or labourers involved in
the particular work. The appellant was advised that no service tax is leviable on
such works and accordingly, they neither took registration under the provisions
of Service Tax nor they charged service tax in their bills. The principal - CPP is-
sued a letter to the appellant in December, 2009 stating that on the nature of
work being done by them for CPP, it appears that service tax is leviable and ac-
cordingly, directed the appellant to obtain service tax registration, in absence of
which, their bills for work done will not be entertained from Jan., 2010. Under
the circumstances, the proprietor, Mr. Jitendra Kumar Sahni obtained service tax
registration number under the new name and style of ‘R.J.S. Enterprises’ as pro-
prietor. Thereafter, the same business or work was undertaken under the name
and style of R.J.S. Enterprises for the principal - CPP, and the appellant started
paying service tax w.e.f. 1-4-2010 under the category of “Manpower Supply Ser-
vice”.
2. By letter dated 7-9-2010, the Range Superintendent, Haldwani asked
for details of turnover and copy of the documents for the periods 2005-2006 till
31-3-2010 with intent to examine the service tax liability for the past period. By
reply dated 30-9-2010, the appellant submitted the requisite documents. The ap-
pellant by letter dated 14-12-2010 requested the Asstt. Commissioner, Central
Excise Division, Haldwani to intimate outcome of the inquiry undertaken by the
Department. In reply, by letter C. No. V (17)51/RST/Aditya/HLD/2010, dated
16-12-2010, the Asstt. Commissioner replied as follows :-
“Please refer to your letter dated 14-12-2010 regarding the outcome of the
investigation in respect of records of your firm.
In this context, it is to intimate that on the basis of the records and docu-
ments submitted, and the work done by you as per your contract agreements with
M/s. Century Pulp and Papers, Lalkuan of Distt. Nainital, it has been revealed that
the most of the services provided do not appear to be covered in any of the taxable
services except the work of yard cleaning which is covered under Cleaning Service
and the work of Maintenance of hydraulic crane which is covered under the Man-
agement. Maintenance and Repair Services but the aggregate value of the same has
been found too below the exemption limit of the small service provider to attract
service tax liability under the provisions of the Notification No. 6/2005-S.T., dated
1-3-2005 as amended.”
3. Subsequently, the appellant received summons from the Superinten-
dent (Preventive) requiring the appellant to produce documents/information for
the periods 2006-2007 to 2010-2011. In compliance, the proprietor appeared and
again submitted the requisite documents/information on 27-9-2011, on which
date the statement of the proprietor was also recorded. Thereafter, show cause
notice dated 5-6-2012 was issued relying on the copy of the agreements entered
by the appellant with the CPP during the years 2006-2007 to 2008, and master
orders dated 14-3-2008 and 7-7-2009. It appeared to Revenue as alleged in the
show cause notice, that under the various agreements, for jobs, under which ap-
pellant was actually engaged for supply of manpower, and were so worded to
avoid the service tax liability. Under the circumstances, the agreements were in
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