Supply of tangible goods Vs Erection,Instalation

[Sumeet Tholle]

Dear Sir,

One of the my client engaged in the business of providing cranes with driver but not registered with dept. and not collected ST also.

He received SCN demanding ST for (2009 to 2014) under Supply of tangible goods for use STGU service.

He is having work orders in following format,

1. Supply of crane with driver on daily/hourly basis- I agree, this covered under STGU service.

2. Job of erection/installation of chimney- Here, we received payment for the specific job and not on hourly/ daily basis.- Can I claim this receipt under Erection, Installation Service and can claim abatement ?

Pl. advise.

Sumeet C. Tholle

CA

[MUKUND THAKKAR]

Sir,

Activity of Installation of chimney covered under service of Erection and Installation. please check your turnover if less than 10 lakhs in specific service or not?

AI Summary

Erection and installation service can apply to job-based chimney works, distinct from supply of goods, affecting service tax treatment. Time based provision of a crane with driver constitutes Supply of Tangible Goods for Use. A discrete, job paid chimney erection constitutes Erection and Installation Service rather than supply of goods. The chimney contract should therefore be assessed under Erection and Installation rules, and the taxpayer must check whether turnover in that specific service meets the applicable small service threshold for abatement or exemption when responding to the show cause notice.