TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 1257
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....ntral Excise, Bhubaneswar against M/s. National Power Projects Construction Ltd. (NPPC). Appeal No. ST/228/2009 is against the Order-in-Original No. COMMR/BBSR-I/ST-4/2009 dated 19/06/2009 passed by the same Authority against M/s. Samal Builders Pvt. Ltd. (SBPL). The brief facts covering both the appeals are as follows:- (i) M/s. National Thermal Power Corporation Ltd. (NTPC in short) have entered into three contracts with M/s. National Projects Construction Corporation Ltd. (NPPC), vide Work Order no. (1) 6159 dated 01.08.03; No. (2) 6359 dated 10.01.2004; and (3) 589 dated 02.03.05. The Work Orders relate to-(i) construction of New Ash Pond in Area No. 2 of TTPS, NTPC Talcher Thermal; (ii) Construction of New Ash Pond in Area  ....
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....rs are in the nature of works contracts. As per the terms of these work orders, NTPC has categorized the contracts as works contracts under the relevant VAT provisions and NTPC carried out TDS. Works contracts are liable to payment of Service Tax only after the introduction of the "Works Contract Service" as a separate service as defined under Section 65 (105)(zzzza) of the Finance Act, 1994. This definition came into effect from 01/06/2007. (ii) The Ld. Senior Advocate submitted that the law on this point is settled by the decision of the Hon'ble Supreme Court in the case of CCE & CX, Kerala vs. Larsen and Toubro Ltd., reported in 2015 (39) STR 913 (SC). The Apex Court in the above decision has held that any contract which is in the natu....
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....ack to back work orders by NPCC for the Works Orders placed by NTPC after retaining a margin about 5%. (ii) He submitted that the arguments advanced by NPCC that the contracts were works contracts equally applicable to SBPL. He reiterated the arguments advanced that no Service Tax will be payable on these work orders prior to 01/06/2007 when the Works Contracts Service was included under Section 65 (105) (zzzza) of the Finance Act, 1994. (iii) In addition to above, he also submitted that even under the category of "works contract" for the period on or after 01/06/2007, no liability can be held against SBPL since they only worked as a subcontractor and the entire value of their work orders was included in the work orders placed by NTPC o....
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....ent, Steel etc. were supplied free of cost by NTPC. They submitted that the Adjudicating Authority will need to re-examine each indivisible work order in the light of the Apex Court decision. 6. Heard both sides at length and perused the record. 7. The demand for Service Tax has been raised against NPCC in respect of the work orders awarded to them by NTPC. Such works orders were, in turn, sub-contracted to SBPL by NPCC on a back to back basis. The Lower Authority has considered SBPL to be independent service provider and demanded the Service Tax from them, in addition to the demand raised against NPCC. 8. The main thrust of the arguments advanced on behalf of both the appellants is that these work orders are in the nature of "Works Cont....
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....rutinized denovo to decide the liability of Service Tax, if any. The Adjudicating Authority did not have the benefit of the decision of the Hon'ble Supreme Court in the case of Larsen and Toubro (Supra). Under the circumstances, we are of the view that the impugned orders merit to be set aside and the issue remanded to the Adjudicating Authority for Denovo decision on the Service Tax liabilities of both the appellants involved. He will be guided by the decision of the Hon'ble Supreme Court in the L & T case (Supra). 12. Before parting with the matter, we have also considered the arguments advanced on behalf of the SBPL that no liability of Service Tax at all will arise on them in as much as they have acted only as subcontractors to NPCC. A....