Installation linked to supply can fall under Erection, Installation and Commissioning Service, while tax quantification needs fresh record-based review.

Installation of solar water heater systems was treated as part of Erection, Installation and Commissioning Service even though no separate installation charge was shown in the invoices, because the installation activity was integral to the supply and sale transaction. The taxable character of the service component was therefore upheld. However, the quantification of the taxable value required examination of the computation data and supporting records furnished by the assessee, which had not been considered by the adjudicating authority. The matter was accordingly remanded for fresh consideration of the service component and a new order in accordance with law.

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Issues: (i) Whether the activity of installing solar water heater systems, when no separate installation charge is shown in invoices, falls under Erection, Installation and Commissioning Service. (ii) Whether the matter required remand for fresh consideration of the service component on the basis of the data furnished by the assessee.

Issue (i): Whether the activity of installing solar water heater systems, when no separate installation charge is shown in invoices, falls under Erection, Installation and Commissioning Service.

Analysis: The assessee cleared solar systems through dealers and installation was part of the transaction. The absence of a separately shown installation charge did not take the activity outside the taxable service category. The activity was treated as an installation service connected with erection and commissioning of the solar system.

Conclusion: The activity was held to fall under Erection, Installation and Commissioning Service.

Issue (ii): Whether the matter required remand for fresh consideration of the service component on the basis of the data furnished by the assessee.

Analysis: The assessee had furnished computation data for the service component from the sales effected during the relevant period, but the adjudicating authority had not examined that material. Since quantification depended on consideration of those records and documents, fresh examination was necessary.

Conclusion: The matter was remanded to the original adjudicating authority for reconsideration of the service component and passing of a fresh order in accordance with law.

Final Conclusion: The taxable nature of the installation activity was upheld, but the computation of the taxable value was sent back for fresh adjudication.

Ratio Decidendi: Where installation activity is integrally connected with supply and erection of goods, it can be taxable as installation service even if the charge is not separately shown, but the taxable component must be quantified on the basis of relevant records and evidence.

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