2003 (11) TMI 3

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....he appellant executes engineering projects on works contract terms. The issue raised is whether the appellant is liable to service tax (which is leviable on a Consulting Engineer) in relation to such projects. The projects in question are the following :- Particulars of contract Value of taxable Service (Rs.) Service Tax @ 5% (Rs.) 1. DHDS contract 58,29,45,821   2,91,47,....

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....has issued Circular No. 49/11/2002-S.T., dated 18-12-2002 clarifying as under :- "Some construction agencies take up turnkey projects for construction of flats, administrative building etc. For constructing these flats they have to do some designing, drawing and also provide advise and technical assistance. The contract is generally for a lumpsum amount with no separate allocation for the above....

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....uction. If the client suggests some changes they are incorporated in the design. This portion of the work is provided to its client and the service is definitely of a 'consulting engineer' and hence taxable." It is the SDR's submission that the order of the Tribunal in Daelim Industrial Company Ltd. has been passed without considering this circular.  4. We have perused the records and ....