TaxTMI 
TaxTMI 
2013 (2) TMI 184
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.... Details of Agreements Project details Desc. Amount (Cr.) 1. Northern Coalfield Ltd., Dudhichua 20-5-02 Supply of Equipments and Accessories 26.14 Coal Handling plant at Dudhichua, M/s. NCL Work & Services 22.13 2. Northern Coalfield Ltd., Singrauli 28-11-05 Supply of Equipments and Accessories 58.54 Coal Handling plant at Nigahi, Package-A, M/s. NCL Work & Services 56.43 3. South Eastern Coalfields Ltd., Bilaspur 29-4-06 Supply of Equipments and Accessories 46.01 Coal Loading Facility at Dipka, M/s. SECL Work & Services 30.9 4. Heavy Engineering Corp. Ltd., Ranchi 31-5-06 Supply of Equipments and Accessories 22.72 Coal Handling plant at Nigahi, Package-B, M/s. NCL Work & Services 57.82 2.2 The applicant/appellant split/divided the job/project by entering into two separate agreements with each of the said client, one for supply of plant, machinery, equipments and the second agreement for works & services, namely, erection, installation and commissioning services. The applicant/appellant discharged Service tax w.e.f. 1-4-2006 on the second set of agreements relating to erection, installation and commissioning services by availing benefit of ....
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....cing his second leg of submission, he has submitted that they have correctly determined and discharged Service tax liability after availing the benefit of Notification Nos. 19/2003-S.T. & 1/2006 w.e.f. 1-4-2006 in relation to works and services contract under the head Erection & Commissioning Service. He has submitted that pursuant to the said works & Service agreements not only the work of erection and commissioning are executed, but also along with the said work, the applicant/appellant had supplied structural steel for erection and commissioning of the plant and machinery. The supply of structural steel for erection & commissioning work are clearly evident from the approved billing schedule between applicant and their clients. Also, applicable VAT has been paid on these structural steel indicating that these are sold and supplied to the clients during the course of erection and commissioning. Consequently, the allegation that the Works & Service agreements are pure service contracts and do not involve supply of materials is incorrect. It is his submission that as supply of goods and services are involved in the works and service agreements, consequently, they are entitled to aba....
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....not be accepted as the applicants themselves had consciously choose to bifurcate the entire project into two parts and chose to discharge Service tax only on the second part without adding the value of plant & machinery to the service of erection and commissioning. Further he has submitted that the service contract on which Service tax as demanded denying the benefit of Notification Nos. 19/2003-S.T. and 1/2006-S.T. also involves supply of materials and hence the benefit of said Notifications are available to them had never been raised by them before the adjudicating authority hence should not be entertained. He has submitted that it is a settled principle of law that the conditions of the exemptions Notification ought to be satisfied before claiming benefit under the same and an exemption Notification to be construed strictly. He has referred to the ratio of Hon'ble Apex Court in the case of Commissioner of C. Ex., New Delhi v. Hari Chand Shri Gopal & Ors. - 2010 (260) E.L.T. 3 (S.C) & CCE, Surat-I v. Favourite Industries - 2012 (278) E.L.T. 145 (S.C.). Further, he has submitted all these facts were suppressed from the knowledge of the department and hence the ld. adjudicating aut....
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....he argument of the applicant saying that due to the said cross-fall-breach clause stipulated in each of the said contract and the project being a turnkey project, therefore, no Service tax is applicable as the said service rendered by them is nothing but 'works contract' service. We find that even though the tender floated by their clients were for execution of coal handling plants at various places, but the entire project had been consciously divided into two separate agreements by the applicant and their clients. The first set of agreements are for supply of equipments and plants and accessories and the second set of agreements were for works and services; since the second set of contracts involved erectioning and commissioning, the applicant registered with the central excise department w.e.f. 1-4-2006 and discharged Service tax on the services of erectioning and commissioning rendered against the said set of service contracts. We find that while discharging Service tax, the applicant/appellant had themselves dealt these two contracts as separate contracts and did not club in calculating their Service tax liability. We find that judgment of the Tribunal in ABB Ltd.'s case (supra....