M/s Ishika Enterprises v. Commissioner of Central Tax, Rangareddy–GST
CESTAT, Hyderabad | Service Tax Appeal No. 20577 of 2014 | Final Order No. A/30354/2026 | Decided on 10.07.2026 | Coram: P. Anjani Kumar, Member (Technical) & Angad Prasad, Member (Judicial)
Background
The Appellant entered into a contract with M/s Bagga Distilleries Hyderabad Pvt. Ltd. for carrying out activities including washing, stacking bottles, cleaning the washing, bottling and blending areas, and servicing the godown. The Department treated these activities as “Manpower Recruitment or Supply Agency Service” and demanded Service Tax of ₹1,76,612/-, along with interest and penalties.
Issue
Whether a contract for carrying out specific work activities, performed using the contractor's own manpower, amounts to a service of manpower recruitment or supply under the Finance Act, 1994.
Tribunal's Reasoning and Decision
The Tribunal examined the contract and found that it specifically required the Appellant to perform washing, stacking, cleaning and servicing activities. The contract did not require the Appellant to supply manpower to the principal.
Relying upon its earlier decision in Rama Enterprises v. CC, CE & ST, Hyderabad involving similarly placed contractors of Bagga Distilleries, the Tribunal held that the Department's allegation was unsupported by the terms of the contract. Since the issue was already settled by the Tribunal, the appeal was allowed.
(Above brief of the judgement prepared by Ms. Shweta Singh, Advocate, Dated: 10 Aug 2026)