TaxTMI 
TaxTMI 
2015 (10) TMI 1302
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.... (1) are engaged in rendering services under the category of Consulting India Services, M/s Rashtriya Chemicals & Fertilizers Ltd. is the appellant no. (2) are engaged to manufacturing of fertilizers. Appellant no. (2) had awarded two lump-sum turn key projects (LSTK) contract for setting up a Nitric Acid plant to appellant no. (1) which was executed during the period of September, 2003 to February, 2004. Appellant no. (1) discharged the service tax liability on the presumption that such an activity is liable to be taxed. Subsequently on being pointed out by appellant no. (2) that tax liability need not be paid, they filed a application for refund claim of Rs. 36,28,515/- and appellant no. (2) filed a refund claim for an amount of Rs. 16, 7....
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....ich are indivisible in nature; he would submit that in the case is in hand, the Works Contract awarded to appellant No. 1 is divisible one, in as much the schedule for payment indicates the payment to be made by appellant No. 2 to appellant No. 1 is on completion of particular stage. He would also read from the judgment of the Apex court in the case of Larsen and Tourbo Ltd. (supra). 5. We have considered the submissions made at length by both sides and perused the records. 6. It is undisputed that appellant No. 1 has executed a LSTK contract for setting up a Nitric Acid plant for appellant no. 2. It is also undisputed that the technology up gradation of H.P. Nitric Acid Plant is a lump-sum contract for 66,87,10,000 Rupees. The price sc....
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.... contained in the execution of a works contract will have to be determined by working from the value of the entire works contract and deducting therefrom charges towards labour and services. Such deductions are stated by the Constitution Bench to be eight in number. What is important in particular is the deductions which are to be made under sub-paras (f), (g) and (h). Under each of these paras, a bifurcation has to be made by the charging Section itself so that the cost of establishment of the contractor is bifurcated into what is relatable to supply of labour and services. Similarly, all other expenses have also to be bifurcated insofar as they are relatable to supply of labour and services, and the same goes for the profit that is earned....
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....een done by the Finance Act, 1994, it is clear that any charge to tax under the five heads in Section 65(105) noticed above would only be of service contracts simpliciter and not composite indivisible works contracts. 24. A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter and not to composite works contracts. This is clear from the very language of Section 65(105) which defines "taxable service" as "any service provided". All the services referred to in the said sub-clauses are service contracts simpliciter without any other element in them, such as for example, a service contract which is a commissioning and installa....