TaxTMI 
TaxTMI 
2016 (5) TMI 455
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....plicant on a miles stone basis. Applicant is undertaking onshore integrated testing and commissioning of the train as per Cost Centre D of the Pricing Document. In terms of Clause 7.12 of the General Conditions of the Contract ("GCC"), applicant is required to undertake integrated testing and system commissioning of the works. "Integrated Testing" has been defined in the Contract at Clause 1.1.4.2 of the GCC as tests performed by the applicant / Contractor at the direction of the Engineer for compatibility with the various sub-systems. Further, 'works' as defined in the Contract at Clause 1.1.6.12 of the GCC includes services to be carried out for integrated testing and commissioning of the Rolling Stock. (b) AAR/44/ST/32/2013 with respect to Hyderabad Metro Project with L&T Metro Rai l Hyderabad Limited ("L&T") ("Application-2"). The said application -2 has been filed with respect to the Contract with L&T for design, manufacture, supply, testing and commissioning of Rolling Stock in Hyderabad. In terms of the said Contract, applicant is undertaking onshore testing & commissioning, integrated testing & commissioning, trial runs and performance as per Cost Centre E-3 of the....
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....e metro project and involves a live testing of not just the EMU but also the other sub-systems of the metro project and thus this activity relates to commissioning of the metro project itself. Applicant further submits that in terms of the meaning given to 'original works' in the exemption Notification No. 25/2012-ST dated 20.06.2012 read with the Explanation 1, the exemption will be available to erection, commissioning or installation of plant, machinery or equipment pertaining to metro and in this, they relied upon the decision of Apex Court in CIT vs. Mir Mohammad Ali (1964) 7 SCR 846 on the definition of the word "machinery" from the Privy Council decision of Corporation of Calcutta vs. Chairman, Cossipore and Chitpore Municipality (1922) ILR 49 Cal 190, wherein the term "machinery" is defined as ; The word machinery when used in ordinary language prima facie means some mechanical contrivances which, by themselves or in combination with one or more other mechanical contrivances, by the combined movement and inter-dependent operation of their respective parts generate power, or evoke, modify, apply or direct natural forces with the object in each case of effecting so de....
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....as to resort to dictionary meaning of the word "commission". The New Oxford American Dictionary, 2001, defines the word "commission" as under; Bring (something newly produced) such as a factory or machine into working condition The New Shorter Oxford Dictionary (3rd edition) defines "Commission" as under; Bring (a machine, equipment etc.) into operation 9. Clause 1 of the Contract Agreement - Contract RS 10 dated 24.05.2013 between Delhi Metro Rail Corporation Ltd and the applicant (Contractor) inter-alia states that both the parties would implement the design, manufacture, supply, testing, commissioning and training of 486 EMU (Passenger Rolling Stock) of Contract RS 10 of Mass Rapid System-Phase III Project under the terms and conditions specified in this Contract Agreement and other Contracts Documents attached. One of such document is the General Conditions of Contract. Relevant portions of General Condition of Contract (Tender RS 10) of Delhi Metro Rail Corporation Ltd (Mass Rapid System-Phase III) are as under; 7.12.1. Tests on completion shall include Integrated Testing where applicable Tests on Completion shall also include Integrated Testing where applicable....
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....f exemption Notification No. 25/2012-ST dated 20.06.2012, in case, services provided by the applicant are; a) by way of construction, erection, commissioning or installation b) of original work and c) pertaining to railways, including monorail or metro. 12. The word 'Commissioning' has not been defined under the Finance Act, 1994. Therefore, one has to refer to its dictionary meaning. As mentioned above, "commission" means to bring a machine, plant, equipment etc., into operation. Rolling Stocks are plant as well as machinery, as held by the Hon'ble Supreme Court in CIT vs. Mir Mohammad Ali (1964) 7 SCR 846 and CIT vs. Taj Mahal Hotel (1971) 3 SCC 550 respectively. Further, these Rolling Stocks are to be brought into operation by the applicant, which would fall under the meaning of word "commissioning". Further, the General Conditions of Contract/ Conditions of Contract mention that tests on completion shall include Integrated Testing, wherein the contractor (applicant) shall follow satisfactory completion of tests on his equipment, sub-systems or systems to verify and confirm the compatibility and compliant performance of his equipment/subsystem/ syst....