2008 (4) TMI 64

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....ervice tax of Rs. 2,84,16,309/- paid by HCCL on 8-1-2004. The Deputy Commissioner had found that the appellants had been engaged in Engineering Consultancy and had rendered taxable service in that category to M/s. New Tirupur Area Development Corporation Ltd (NTDCL). The tax paid was payable by HCCL. HCCL had claimed refund of the amount on the ground that they had not rendered such service to any person. In the appeal before us and during the hearing it is submitted that initially HCCL had entered into two contracts with NTDCL. As per one of the contracts, HCCL was to render service of Consulting Engineer to NTDCL and as per the other contract HCCL was to implement the Water Treatment and Distribution Project (TWP) for NTDCL. On 29 October....

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.... = 2004 (170) E.L.T. A181 (S.C.) (ii) Rolls Royce Ind. Power (I) Ltd. v. CCE - 2006 (3) S.T.R. 292 (T) = 2004 (171) E.L.T. 189 (Tri.-Del.) (iii) CMS (I) Operations & Maintenance Co. (P) Ltd. v. CCE - 2007 (7) S.T.R. 369 (Tri.-Del.) 2. Ld. SDR relies on the CBEC Circular No. 49/11/2002-S.T., dated 18-12-2002 to support of his plea that even when a person rendered Engineering Consultancy as part of a turn-key contract the said service portion was liable to service tax under the category of Consulting Engineer. 3. We have carefully considered case records and the submissions made by both sides. It is seen from the contract that the appellants prepared engineering designs required for executing the project simultaneously with carryi....

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....nstitute a single turnkey contract that provides for the design, engineering. Construction, testing, commissioning and completion of the works (as defined in both the contracts)." In the letter dated 20-1-2004 from New Tirupur Area Development Corporation Ltd., to M/s. Hindustan Construction Company Ltd., appellant was informed as follows "Therefore, NTADCL reiterates that both the Engineering Contract and Construction Contract, though executed separately are in fact a single contract and that the liability of HCC is to execute its portion on a turnkey basis taking both the contracts together. In view of the above, it is our opinion that the opinion of the Consultant that service tax is payable by HCC on the engineering services is....