2013 (9) TMI 1156

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g service', etc. While functioning as consulting engineer, the appellant provided detailed engineering services including preparation of design and drawings, with or without cost estimation, preparation of tender document and tendering on behalf of the client, preparation of detailed drawings and supervision of work including certification of contractor's bills and disbursement of payments of certified bills to the contractors on behalf of the client. In respect of certain contracts executed by the appellant during March, 2010 to March, 2011, the Department entertained a view that the appellant should have paid service tax on the entire cost of projects executed. The contention of the appellant was that they were only acting as consulting e....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... appellant. Therefore, the transaction between the three parties in respect of the cost of execution of the project would clearly fall under the category of reimbursement of actual expenses and the functions performed by the appellant would clearly show them as a pure agent. Therefore, the demand for service tax is not sustainable. 3. On the other hand, the learned AR would submit from the same contract that the appellant was responsible for execution of the contract and was required to ensure that the contract was executed in accordance with the tender. Unlike the work of a consulting engineer, the appellant was responsible from the initial stage till the end of the project and therefore, the Department is right in holding that the....