2015 (4) TMI 613

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....s with M/s Lanco Green Power Private Ltd., M/s. Lanco Energy Pvt. Ltd. etc. The scope of work in each of these contracts, inter-alia, includes various activities like preliminary site activities, bus bush clearance, Topographical survey, construction of approach roads, temporary buildings, tunnels, coffer dams, underground power house tunnels, transformer tunnels etc., The value of contract is fixed at a lumpsum amount for the scope of the work defined in the contract. However, the appellant had paid service tax only on the items representing Erection, Commissioning, Transportation of equipment and did not pay service tax on the value relating to Tunnels, Roads, Dams etc. The appellant did not pay the tax believing that work relating to con....

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....tion relating to Construction of Roads and other constructions, is allowed. Therefore, appellant's method of assessment and payment of tax on taxable portion is in accordance with law. 6. The Learned AR submits that it is a single composite contract and therefore appellant could not have claimed exemption in respect of certain activities and pay service tax on some of the activities. He submits that the single composite contract should have been considered as a single service and dealt with by the appellant. 7. We have considered the submissions made. The definition of the Commercial or Industrial Construction Services under 65 (25b) of the Finance Act 1994 read as under: '(25b) "commercial or industrial construction service" mea....

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....s and Dams which are clearly excluded from the definition itself for the purpose of levy of service tax and there is nothing wrong in what they have done. Whether a composite contract can be vivisected is a question of fact and has to be based on detailed consideration of provisions of contract and the understanding between the parties and applicable provisions. At this stage what emerged after hearing both the sides is the fact that the work undertaken by the Appellants related to Hydro Power Project consisting of various activities.The definition of 'Commercial or Industrial Construction Service' excluded services provided in respect of Dams, Roads, Tunnels. In such a situation, the provisions of section 65A of Finance Act, 1994 r....