2020 (2) TMI 389

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....llant is same. 2. Brief facts of the case are that the appellant had centralized Service Tax Registration for providing services such as 'Erection Commissioning and Installation service, consulting engineering service and work contract service', 'Commercial or Industrial Construction Service' and 'Goods Transport Agency Service'. The appellant provided various services to customers like NTPC, NHPC, Nuclear Power Corporation, Power Grid Corporation and some other customers and electricity boards. They used to get contracts through competitive bidding. The contracts received were for supply of equipment, execution of civil works and installation and commissioning. The said contracts were issued in competitive bidding and independent agreemen....

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.... impugned order therein was set aside and appeal was allowed. For ready reference, we reproduce relevant paragraphs of the said order:- "5. After hearing both the parties, we are of the opinion as follows:- The show cause notice as well as the order of the Adjudicating Authority below has considered the entire activity of the appellants arising out of the said three contracts as one single activity of work contract and, the demand has been proposed and confirmed on the gross-value of the total value of three of the contracts. For the better appreciation of the fact, we rely upon the decision of Larsen & Toubro Ltd. 2015 (39) S.T.R. 913 (S.C.). According to the said decision, it is an Indivisible works contact which can be classified as ....

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.... other activities having own identity and permutation and combination of activities or services not changes character of service - Particular activity may be dominant and others may not be prominent but each activity having own identity, existence and independence and play its role - Contract whether composite or turnkey may involve an activity or cluster of activities in the nature of services and such services may be provided during its execution - Discernible services may be advice, consultancy or technical assistance and classifiable under appropriate taxable service depending upon nature of activity - Section 66 of Finance Act, 1994. Composite contracts - Constitutional basis for divisibility - Article 366(29A)(b) read with Articles....

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....d to be a work contract service where the value of the goods is indivisible the appellant is entitled to abatement. 8. Finally coming to the contract of Erection, Commissioning & Installation Services: As already discussed above for executing this contract the goods required for the purpose were supplied to the appellant vide a separate agreement. No question for this service to become work contract arises nor for adding the value of three of the contracts as to gross-value liability under works contract service as alleged. It is apparent and admitted fact that the appellant is otherwise 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 t....