TaxTMI 
TaxTMI 
2018 (8) TMI 902
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....ompleted from various vendors. The scheme is like this, that once some project is approved by the competent authority in the Government of India, its administrative approval is granted with a total estimate cost and the period within which it has to be implemented by National Informatics Centre (NIC)/National Informatics Centre Services Inc.(NICSI). The assessee identifies different vendors for execution of various items of work required to be done for complete execution of the project. Entire budget is put at the disposal of assessee by the Government Department or autonomous bodies which had approved the project. The assessee advertises and identifies the vendors and also negotiates the rate etc. by using their technical expertise. The vendor raise the invoice in the name of ministers of Government of India & other autonomous bodies (hereinafter referred as sponsors) whose project is being implemented by the assessee. The payment against these invoices is settled by the assessee from the funds allocated in terms of administrative approval of the Ministry. The assessee charges/retains a definite amount from the allocated funds as his administrative charges as settled between the c....
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....s. 5.2. Where NICS is acting as implementing agency: In order to understand the flow of transactions, the following chronology is noted- (i) On receipt of award letter from the clients, assessee examines the kind of services to be provided and accordingly appoint the empanelled vendor. (ii) On the basis of above examination, assessee raises proforma invoice /quotation (which includes the estimated value of goods, services and admin charges, etc.) to the clients and assessee receives advance(s) from its clients. Further, as per the payment terms, any unspent portion of the advances has to be returned to the clients. (iii) After completion of the projects, the empanelled vendors raise invoices directly in the name of the clients (not in the name of assessee). As a consideration to implement the project, assessee charges only administrative charges from the clients. (iv) Presentation in the financial statement; It is pertinent to highlight there that neither gross amount received is shown as revenue nor payment made to vendor claimed as an expense. In other words, only the consideration charged by the assessee in respect of implementing the projects, is reflected in the....
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.... the activity /service of the respondent was in the nature of "Consulting, Engineering Services" and further, that the respondent was discharging service tax on the amount received as administrative charges from the government/sponsores on agreed rate, for their services. Further, the ld. Commissioner has observed that the respondent identified the vendors and also negotiated the rates etc. by using their technical expertise. The vendors raised their invoice directly in the name of Ministeries of Govt. of India and other autonomous bodies, whose project was being implemented by the respondent. The Adjudicating Authority also erred in observing that the respondent themselves has not executed any of the projects but has acted as an intermediary in between the sponsoring agency and the executing agency. 9. He has further drawn our attention to the reliance placed by the ld. Commissioner on the ruling of this Tribunal in the case of Foster Wheeler Energy Ltd versus CCE- 2007 (7) STR 443 (Tribunal-Ahmd.), which is not relevant to the present case. In the above said decision, PLL (Petronet LNG Ltd.) entered into an EPC contract with M/s. Ishikawajma-Harima Heavy Industries Ltd., to de....
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....bilities) information network. The activities entrusted to NICSI to achieve this objective involved planning and implementing the procurement, establishment, engineering commissioning etc. i.e. comprising of all aspects of execution of the project. After receipt of the advance money, the respondent alone is responsible for overall execution of the projects and there seems to be no other agency as an independent entity involved in the execution of the entire project. All agencies involved in execution of any project are only working in the capacity of vendors/subcontractors of NICSI, the respondent. As the project is given to the respondent on turn-key basis, therefore, the gross amount received by the respondent towards execution of the project constitutes the gross taxable value. 13. Further, although the Adjudicating Authority upheld the noticee"s liability of payment of service tax at the time of receipt of advance/receipt of final payment, whichever is earlier, yet he has erred in dropping the complete demand of Rs. 3,89,02,36,342/- , which also included the demand of Rs. 50.17 crore on non-payment of service tax on the outstanding advance amount, without adequately discussi....
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....ndent shall be open for inspection by the Sanctioning Authority and Audit, both by the Comptroller and Auditor General of India under the provisions of C & AG (DPC) Act 1971 and Internal Audit party by the Principal Accounts Office of the Ministry or Department, whenever it is called upon to do so. Further, the Utilisation Certificate of sanctioned amount of Rs. 240 crores disbursed will be forwarded to be PAO, DIT. Further, the respondent have to furnish the completion report within one month of the completion of the duration of the project. Further, provided that the respondent will spend the grant-in-aid exclusively in pursuance of the objectives envisaged in rules/memorandum of DIT and for the purpose, it is being sanctioned. Further, provided that grant-in-aid shall be utilised for the purposes for which it has been sanctioned and as per the guidelines are annexed to the Administrative Approval dated 28.01.2009 and respondent and NIC will be liable to refund the unspent balance, if any, to the comment of India. Further, provided that the respondent and NIC will maintain and will present their annual accounts in the standard format as required under GF Rules, 2009. 17. Thus,....
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....reement and the report submitted by Foster in the records, sought to maintain, are all of technical nature and, therefore, there is no doubt that the services rendered are essentially, predominantly in the field of engineering. Accordingly, it has been rightly held that Forster surrendered services of Consulting Engineer. 19. The learned Counsel also relied on the ruling of another Coordinate Bench of this Tribunal in the case of M/s. IRCON International Ltd. versus CCE, Patna- 2017 (4) TMI 903 CESTAT-KOLKATA. Accordingly, the ld. Counsel urges that the appeal of Revenue is without merits as the activities of the respondent/assessee are not liable to be classified under ECIS. It is further urged that under similar facts and circumstances, for the subsequent period, the Revenue has accepted the contentions of the respondent/ assessee and has not raised any demand. The ld. Counsel has also relied on the Trade Notice No.53 - CE- ST/97 of the New Delhi Commissionerate dated 4th of July 1997, wherein giving clarification, it is provided "Consulting Engineer" means any professionally qualified engineer or engineering firm, who either directly or indirectly renders any advice consultan....