TaxTMI 
TaxTMI 
2012 (7) TMI 705
X X X X Extracts X X X X
X X X X Extracts X X X X
....echnical assistance, financial services, liaison and interaction with the aforesaid statutory bodies and services in getting sanctions, clearances and approvals regarding the project and loan if required, preparation of bid documents, assisting implementing agency in deciding the tenders & supervising/monitoring the project for successful completion. All the assignments were divided into various stages for payment of fees of the appellant. Also, the jobs were divided in stages, which were independent, which means that the appellant's services can be terminated after the completion of any stage. The appellant had bifurcated the aforesaid services in various stage as consulting and non-consulting category and service tax was paid only on thos....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of Daelim Industrial Co. Ltd. vs. C.C.E., Vadodara -2006 (3) STR 124 (Tri-Del.). Hence the present appeal. 3. The appellants have challenged the impugned order on merits as also on limitation. It is not disputed in the impugned order that the assignments given to the appellants are divided in various stages for the payment of fees and the bills raised for the payment of fees are submitted by the appellants in accordance with the agreement drawn with the implementation agency. The appellant performs the work for its clients in the following stages:- a. Preparation of detailed project report. b. Obtaining i. Approvals from the government ii. Approvals from the financial institutions iii. Statutory clearances c. Tender ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... technical expertise, they nevertheless cannot be delinked from the main work i.e. execution of the water supply project, without compromising the outcome. The fee for each stage of work is a percentage of total fee to be paid to the appellant by the client for the entire contract. There is no doubt that the contract entered into with the various clients is in the nature of a service contract. It is a well settled law that the contracts can not be vivisected. In the case of Daelim Industrial Co. Ltd. vs. C.C.E., Vadodara - 2006 (3) STR 124 (Tri-Del.), it has been held that the work contracts can not be vivisected and part of it subjected to service tax. Applying the same logic, the service contracts in the instant case can not be vivisected....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion and statutory clearances etc. are admittedly not covered by the definition of 'Consulting Engineers services'. The contract also reveals that the payment for each stage of work is different and the appellant's services can be terminated after completion of any stage. The Hon'ble Gujarat High Court in the case of C.C.E & C, Vadodara II vs. Mascon Multiservices & Consultants P. Ltd. - 2010 (19) STR 484 (Guj.) has held that survey and map-making service, survey for pipeline, detailed reconnaissance survey, detailed engineering survey and detailed route survey would be taxable under the category of Engineering Services only after amendment to Section 65 of the Finance Act when clause (b) was introduced in the Budget of 2005. By following th....