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TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 378
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....ssioning and Installation services', 'Consulting Engineer's Service', 'Works Contract Services', 'Commercial or Industrial Construction Service' and 'Goods Transport Agency Services'. The department on information received by the officer of Anti-Evasion Branch of Service Tax Commissionerate, Delhi alleged evasion of payment of Service Tax by the appellant for rendering the works contract service. It is also alleged that appellant has wrongly classified the remaining service under ECIS and CICS with the sole intention to wrongly avail the benefit of Notification No.1/2006-ST dated 01.03.2006. Resulting a show cause notice dated 13.10.2014 was served upon the appellants proposing a demand of Rs. 6,79,32,667/- along with interest at the approp....
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....appellants. It is submitted that agreement for supply of equipment is nothing but an agreement of sale and the agreement for installation thereof is the agreement for rendering Erection, Commissioning & Installation Service. The appellant is separately discharging the liability even for the contract of Civil Construction, however, after availing the abatement as per the Notification in this regard the Adjudicating Authoritie's decision to deny the entitlement of the appellant to avail that abatement is absolutely erroneous. For all these reasons appellant is praying to set aside the order and appeal be allowed. Learned Counsel has relied upon the following Case laws:- (i) Commissioner of Central Excise, Raipur V/s BSBK Pvt. Ltd. reported a....
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....ppreciation of the fact, we rely upon the decision of Larsen & Toubro Ltd. (Supra). According to the said decision, it is an Indivisible works contact which can be classified as a works contract where the value of goods is not possible to be separated and that the property in goods stands transferred in favour of the service recipient at the site i.e. at the place of provision of Services. It was clarified that the liability to service tax to indivisible works contracts is only about the service element and the tax on transfer of property in goods cannot be levied under Finance Act. While applying this decision to the facts of the present case, we observe that prior the appellant started Civil Construction, Errection or Installation at the ....
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....e of activity - Section 66 of Finance Act, 1994. Composite contracts - Constitutional basis for divisibility - Article 366(29A)(b) read with Articles 286A and 246 of Constitution of India enable segregation of value of goods from different elements of service involved in composite contracts and segregated elements fall under respective fields of taxation - Segregation of service element from goods involved in turnkey or composite contracts permissible when sale of goods involved in such contract segregated under Constitutional provisions - Articles 246, 286A and 366(29A) ibid." The order to that extent is hereby set aside. 6. Coming to the contract of Commissioning and Industrial Construction Services. We are of the opinion that from ....
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....e discharging liability for three of these contracts separately. Order to this extent is also liable to be set aside. 9. Finally coming to the argument that the issue is no more Res-Integra as has already been decided by Larger Bench of the Tribunal in the case of M/s BSBK (Supra) and even has been upheld by the Hon'ble Apex Court we are of the opinion that though the Commissioner has tried to distinguish the present matter but it is observed that the ground taken about said decision is absolutely wrong. It is mentioned by the Commissioner that in the previous case issue of abatement is not involved. The said finding is an error apparent on the face of record. When question arising for adjudication and facts are almost identical to previou....