13 March 2008
1.The Department has issued a Notice to company that mending contractor has made contract work and his services covered under manpower recruitment. 2.The company has made excisable commodity 3.The contractor has done work with his friends 4.The limit of exemption has been cross 5.In regards of work done by himself and with his friends a litigation may be attract that manpower defeination is imforced the recruitment agency which can not work but impontment for the same work with efficeny of person and requirment of employer. So pl. tell what is the pledinng answer made to department.
15 March 2008
If you can please specify the mending work carried out by you and is amounting to manufacture.
Whether the goods are movable and marketable without KDC ( knocked down condition)
For a manufacturer the SSI limit was 1.5 crores.
Whether contract with friends was under a partnership firm, if not it cannot be clubbed under SSI. They are individuals having their own threshold limits.
Whether the limit stated by you is under service tax or excise
Whether the friends were under the payroll and have they been paid in cash or cheque, if cash nothing can be established by the department, if cheque it can be litigated
You need to provide with ample inputs for clarifying your inquiry, i can be reached on dayalkundani@gmail.com for further assistance in the matter
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