TaxTMI 
TaxTMI 
2022 (8) TMI 165
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....e Appellant, for development of Jawaharlal Nehru Pharma City was originally awarded to them vide Letter of Intent No. APIIC/CE- 1/Pharma City/18/2002 dated 18.11.2003 (Pg 149 - 151 of the Appeal Paper book). The said LOI was for 'Development of Pharma City on Commercial Format'. In terms of the said LOI, the project work shall be executed only by an incorporated Special Purpose Company. Accordingly, the special purpose company viz., M/s Ramky Pharma City (India) Ltd., was incorporated and a Concession Agreement for the Development of Pharma City on Build, Own and Operate (BOO) [Pg. 79-174 of Appeal Paper book] basis was executed between the APIIC (Andhra Pradesh Industrial Infrastructure Corporation Ltd) and the special purpose company (RPCIL). RPCIL has executed various work orders, from time to time, on the Appellant for execution of construction work relating to the development of Pharma City, which are detailed in SCN at para 4 [Pg. 250 of Appeal Paper book]. Copies of the said work orders are placed at Pg 175-201 of Appeal Paper book. 3. Basis the above work orders, it was determined by the Department that the Appellant has short paid service tax under the service c....
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.... the other hand reiterated the findings of the Order-in-Original and also relied upon the following judgments for the demand under site formation services: R.balarami Reddy Vs CST, Hyderabad 2019(22)GSTL 255(Tri0Hyd) Alok Guha Vs CST, Raipur 2018 (18) GSTL 434 (Tri- Delhi) 8. Heard both sides and perused the appeal records. 9. We find that the issue to be decided in the given case is whether the work orders issued for the various works are indivisible to form a works contract or are individual services as demanded in the SCN and confirmed by the Ld. Adjudicating authority. We find that the Ld. Adjudicating authority has dealt with the work orders in dispute and has come to a conclusion that the services rendered by the Appellant for construction of social infrastructure, Commercial and Services Hubs, Water Distribution system including water treatment/water reservoir and overhead tanks, marine outfall pipeline, common effluent treatment, boundary wall, construction of conduit (earth excavating, concrete construction, providing and laying of pipes) to drain out storm water are classifiable under commercial or industrial construction services. 10. On perusa....
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....tractor which is relatable to supply of labour and services cannot be included in the value of the goods involved in the execution of a contract and the cost of establishment which is relatable to supply of material involved in the execution of the works contract only can be included in the value of the goods." For the same reason the Centre cannot include the value of the SIM cards, if they are found ultimately to be goods, in the cost of the service. As was held by us in Gujarat Ambuja Cements Ltd. v. Union of India [(2005) 4 SCC 214], SCC at p. 228, para 23 :- "This mutual exclusivity which has been reflected in Article 246(1) means that taxing entries must be construed so as to maintain exclusivity. Although generally speaking, a liberal interpretation must be given to taxing entries, this would not bring within its purview a tax on subject-matter which a fair reading of the entry does not cover. If in substance, the statute is not referable to a field given to the State, the court will not by any principle of interpretation allow a statute not covered by it to intrude upon this field." (at paras 88 and 89)" 17. We find that the assessees are correct ....
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....mpliciter and not composite works contracts, such as are contained on the facts of the present cases. It will also be noticed that no attempt to remove the non-service elements from the composite works contracts has been made by any of the aforesaid Sections by deducting from the gross value of the works contract the value of property in goods transferred in the execution of a works contract." .................... 43. We need only state that in view of our finding that the said Finance Act lays down no charge or machinery to levy and assess service tax on indivisible composite works contracts, such argument must fail. This is also for the simple reason that there is no subterfuge in entering into composite works contracts containing elements both of transfer of property in goods as well as labour and services." Thus, in the instant case, as regards the demand confirmed under the categories of Commercial or Industrial construction, Erection Commissioning and Installation services both prior to 01.06.2007 and post 01.06.2007, we are of the view that the same cannot be sustained and hence the demand to the extent of Rs. 19,71,44,488/- and Rs. 2,11,55,639/- under c....