2018 (7) TMI 25

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....dated 07/04/2015 and 31/03/2015. 2. M/s Shakti Enterprises, M/s Shiba Electronics and M/s Smart Electronics executed various activities in the form of turnkey contracts for Rajasthan Government in connection with provision of traffic signals in different parts of the States. The work included management, maintenance and repair of traffic signals poles/lights and installation/commissioning of surveillance cameras at various road inter-sections. The assessees' contracts included supply of materials. The Department, after issue of show cause notices raised the demand of service tax for the period October 2005 to September 2010. The Original Authority ordered payment of service tax against the all the three assessees for the full period withou....

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....rior to the introduction of WCS. Hence, he submitted that there is no justification for levy of service tax for the period upto 31/05/2007 under any other category ; (ii) He submitted that the activity carried out was considered as works contract by the VAT Department also' he also submitted that the details of the material which was consumed while providing the service was furnished to the lower authorities which was supported by Chartered Accountant certificate as well as Civil Engineering Certificate ; (iii) He further submitted that the service tax demanded against the assessees was also paid alongwith interest prior to the issue of show cause notice. He submitted that a substantial part of the service tax demand was paid prior to t....

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.... been complied with prior to making payment of service tax under Works Contract Scheme which was done prior to the issue of show cause notice. 7. We have heard both sides at length and perused the record. 8. From the nature of activity carried out by the assessees for the Rajasthan Government, it is seen that contracts were in the form of turnkey contracts which involved supply of the materials necessary for carrying out the work of installation and maintenance of surveillance cameras, street lights etc. Consequently, such contracts are to be considered as works contracts defined under Section 65 (105) (zzzza). The decision of Hon'ble Supreme Court in the case of Larsen & Toubro Ltd. (supra) is very much applicable to such contracts. The ....