2018 (9) TMI 903

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..... 2. The relevant facts that arise for consideration after filtering out unnecessary details are appellants are manufacturers of excisable goods like structures of electric and telecom towers and the parts thereof and are also undertaking erection of the same under turnkey projects. They are registered with the department and are discharging service tax liability and availing CENVAT credit of the various inputs and input services. On verification of records, it was noticed by the lower authorities that in addition to the manufacture and erection of towers they were involved in trading activity of isolators, disc insulators, ACSR Moose conductors., High Tensile Galvanized steel wire and other tower and cable fittings. It is noticed by the....

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....ore specifically to the agreements executed by them with the APTRANSCO. It is his submission that both the lower authorities have erroneously assumed that appellants were carrying out trading activity. It is the submission that the supplies made by them were in pursuance to the turnkey projects undertaken which comprises of manufacture, supply, erection and installation and commissioning of telecom and electric transmission towers which are composite contracts awarded with separate schedule for supply of materials. It is his submission that separate values are assigned to various elements of contract are only for the purposes of facilitating periodic payments by the customer in execution of the turnkey project. He would submit that the law ....

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....f materials, erection and testing of the same. On perusal of Schedule-A, I find that it contains the quantity of the items that is required for executing such turnkey projects and all the items mentioned in paragraph No. 2 are recorded as supplies to be made for execution of such turnkey projects. On the face of such a clear evidence to show that the items were in fact nothing but part of the turnkey project executed by the appellant, lower authorities were in error in coming to a conclusion that the amounts billed by the appellant separately in a commercial invoice of these items is a trading activity. 7. On a specific query to the counsel as to whether appellant has received any amount in excess than the contracted turnkey project amou....