TaxTMI 
TaxTMI 
2021 (2) TMI 116
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....emand of service tax with penalty and interest. 2. The appellant claims to be engaged in providing services relating to construction, consultancy, maintenance and repair, management, execution of projects relating to power and transport sectors. It entered into an agreement with M/s Gautami Power Pvt. Ltd. [Gautami] for undertaking the design, engineering, construction, installation, testing and commissioning of a "combined cycle gas turbine facility" [Gas Facility] in Andhra Pradesh. The appellant further claims that in order to execute a portion of the "civil work" of aforesaid agreement, it appointed M/s Nagarjuna Construction Company as a contractor. The said civil work was further sub-contracted to M/s Ganon Durkekrley & Co. Ltd. an....
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....ices, or capital goods; b. In the present case, the appellant utilized credit for payment of service tax on output CICS, which was in violation of the conditions of the Notification. Further, there is no distinction between wrongful availment and wrongful utilization of credit; and c. That the appellant could not establish that the input services, in respect of which credit has been availed and utilized, were used specifically for rendering taxable output services, other than the output service of CICS rendered to Gautami. 6. Shri B.L. Narasimhan, learned counsel appearing for the appellant made the following submissions : (i) The activities of the appellant constitute a composite contract involving goods and s....
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....necessary to refer to the agreement executed between the appellant and Gautami, for that would determine whether it was a composite contract imposing goods and service. The relevant Article 2.1 of the agreement is reproduced below : "Except as otherwise expressly set forth in this agreement, contractor shall perform or cause to be performed all services required in connection with the design, engineering, construction, commissioning, start-up, demonstration and testing of the Facility (the 'services' on a lumpsum fixed price basis in accordance with provisions of this agreement as follows : (i) all engineering and design services required for a completely engineered facility; (ii) port of entry clearance and handling services in In....
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....ench of the Tribunal in M/s BSBK Pvt. Ltd. Vs. Commissioner, Customs, Central Excise & Service Tax, Commissionerate, Raipur [2020(12) TMI 1015 - CESTATE New Delhi] in view of the decision of the Gujarat High Court in Messrs NJ Devani Builders Pvt. Ltd. Vs. Union of India [2020(11) TMI 798 - Gujarat High Court]. 12. The relevant portion of the decision of the Tribunal is reproduced below : "27. The contention of the learned Authorized Representative of the Department is that since the appellant registered itself under the head of CIC or ECI, it cannot now contend that the services rendered by it would be classified under 'works contract' service. 28. This contention cannot be accepted in view of the decision of the Gujar....
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....ioner no.1 registered itself for the service tax under the head of 'commercial / industrial construction services', the petitioner cannot be fasten its liability to pay service tax on the services rendered by it as 'work contract' services. 6.5. Considering the aforesaid amendment in the Finance Act, 1994, the Supreme Court in the case of L & T Ltd. (supra), after considering the decision of the Supreme Court in the case of Gannon Dunkerley reported in (1993) 1 SCC 364 = 2002-TIOL-103-SC-CT-CB held that the separation of the value of the goods contained in the execution of a works contract will have to be determined by working from the value of the entire works contract and deducting there from charges towards labou....