TaxTMI 
TaxTMI 
2017 (4) TMI 1086
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....te in the present case relates to their liability to service tax for various contracts executed by them for DMRC w.e.f. 01/04/2004. The Revenue initiated proceedings against the appellant to recover service tax of Rs. 9,94,71,460/-. Five contracts and some projects were listed for arriving at the tax liability. The case was adjudicated resulting in the impugned order. The Commissioner held that the appellants rendered taxable service under the category of erection, commissioning and installation service chargeable to service tax w.e.f. 01/07/2003. He confirmed the service tax demand and also imposed penalties under Section 76, 77 and 78 of the Finance Act, 1994. 2. The learned Counsel for the appellant submitted that they have executed the....
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....pleaded that the contracts executed by the appellants are to be classified as works contract and the works contract in respect of railways is excluded from tax liability as per the statutory definition itself. It is well settled legal position that metro work is nothing but railway work. 4. The learned AR supported the findings of the Original Authority. He stated that the contracts are essentially for installation and commissioning of railway track and traction electrification. The Original Authority examined in detail the classification of service. There is a clear demarcation of supply of goods as well as rendering of service, in billing. In such situation, tax liability can be confirmed on the service portion, clearly identified in the....
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....eded further to confirm the classification under erection, installation and commissioning service. Apparently, there is a self-contradiction in such finding. The show cause notice as well as the impugned order recorded that the contracts now being subjected to service tax are comprehensive contracts involving supply of materials, design, installation, testing of materials. However, the Original Authority recorded that "the nature and scope of contracts are vide enough to encompass three components, handling of supply and planning, execution and maintenance of installation and commissioning of supplied goods". He observed that the work in totality can be called as erection, commissioning and installation service. We find that the Original Au....
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....tion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); or (e) turnkey projects including engineering, procurement and construction or commissioning (EPC) projects;" 6. A plain reading of the scope of the above said tax entry will show that a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods is covered under works contract service. Admittedly, in the contracts now under consideration there were transfer of property in goods which are directly involved in the exclusion of work by the appellant. As such, we find that the findings of the Original Authority is without any basis and cannot be le....