CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL HYDERABAD REGIONAL BENCH - COURT NO. – I Service Tax Appeal No. 20573 of 2014 (Arising out of Order-in-Appeal No.227/2013 (H-IV) S. Tax dated 30.12.2013 passed by Commissioner of Customs, Central Excise & Service Tax (Appeals – II), Hyderabad)

M/s Rama Enterprises .. APPELLANT

2-60, Satamarai Village, Shamshabad Mandal, Rangareddy District, Telangana – 500 052.

VERSUS Commissioner of Customs, Central .. RESPONDENT Excise and Service Tax Hyderabad - IV Posnett Bhawan, Tilak Road, Ramkoti, Hyderabad, Telangana – 500 001.

AND Service Tax Appeal No. 20575 of 2014 (Arising out of Order-in-Appeal No.231/2013 (H-IV) S. Tax dated 30.12.2013 passed by Commissioner of Customs, Central Excise & Service Tax (Appeals-II), Hyderabad)

M/s Vinayaka Enterprises .. APPELLANT H.No. 1-20/1, Satamarai Village, Shamshabad Mandal, Rangareddy, Telangana – 501 218.

VERSUS Commissioner of Customs, Central .. RESPONDENT Excise and Service Tax Hyderabad - IV Posnett Bhawan, Tilak Road, Ramkoti, Hyderabad, Telangana – 500 001.

APPEARANCE:

Shri B. Venugopal, Advocate for the Appellant.

Shri K. Raji Reddy, Authorized Representative for the Respondent.

CORAM: HON’BLE Mr. A.K. JYOTISHI, MEMBER (TECHNICAL)

HON’BLE Mr. ANGAD PRASAD, MEMBER (JUDICIAL)

FINAL ORDER No. A/30018-30019/2026 Date of Hearing: 05.08.2025 Date of Decision: 09.01.2026 [ORDER PER: ANGAD PRASAD]

M/s Rama Enterprises (hereinafter referred to as appellant) has filed Appeal No. ST/20573/2014 against the Order-in-Appeal No. 227/2013 (H-IV) S. Tax dated 30.12.2013 passed by Commissioner of Customs, Central Excise & Service Tax (Appeals – II), Hyderabad.

2. M/s Vinayaka Enterprises has filed Appeal No. ST/20575/2014 against the Order-in-Appeal No. 231/2013 (H-IV) S. Tax dated 30.12.2013 passed by Commissioner of Customs, Central Excise & Service Tax (Appeals-II), Hyderabad.

3. In these both appeals issues are same, so heard simultaneously to decide together.

4. Appellants are providing certain ‘quality works’ in the manufacturing unit of M/s Bagga Distilleries Hyderabad Pvt Ltd., who are engaged in the manufacture alcoholic beverages (IML).

5. The Department issued Show Cause Notices against the appellants alleging that the services rendered by the appellants in terms of the agreement mentioned above constitutes supply of manpower service and therefore, attracts Service Tax under the category of ‘Manpower Recruitment or Supply Agency Services’ under Section 65(105)(k) read with Section

65(68) of the Finance Act, 1994.

6. The appellants have filed their replies on various grounds, both on merits as well as on limitation. The Adjudicating Authority passed the OIO’s and confirmed the demand with interest and penalty as proposed in Show Cause Notices.

7. Appellants have filed appeals before the Commissioner of Customs, Central Excise and Service Tax (Appeals-II), Hyderabad. They were directed to pre-deposit 50% of Service Tax demand. The appellants filed a misc. application requesting for modification of Stay orders with regard to pre- deposit directions, which were rejected and the Appeals were dismissed for non-compliance of the said order in terms of Section 35F of Customs Excise Act, 1944.

8. Appellants have filed the appeals against those O-I-A and the Hon’ble Tribunal vide Final Order No. 25489-25493/2013 dated 25.06.2013 set asided the order and remanded the matter with observations that the activities carried out by the appellants, prima facie, would not be covered under “Manpower Recruitment or Supply Agency Services” and directed to decide the case on merits.

9. Learned Commissioner (Appeals), upheld the order of the Adjudicating Authority and confirmed the demand of Service Tax under the category of ‘Manpower Recruitment or Supply Agency services’, along with interest and with some modification about penalty under Section 77 and 78 of the Finance Act, 1994.

10. Learned Counsel for the appellants submits that the “Contract Deed” between appellants and M/s Bagga