TaxTMI 
TaxTMI 
2008 (11) TMI 108
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....bifurcated so as to hold that a part of the contract would fall under category of Engineering Services, leviable to Service Tax, Revenue has filed the present appeal. We have heard Shri S.R. Prasad, learned SDR for the Revenue and Shri Prakash Shah, learned advocate for the respondent. 2. As per facts on record, the appellants as a part of consortium, comprising of M/s. Ballast Nedam International, B.V. Plot No. 7/A, Dahej Main Road, Rahlyad Chockdi, Tal. Vagra, Dist. Bharuch, M/s. Itochu Corporation, M/s. Mitsui & Co. Ltd. and M/s. Toyo Engineering Corpn. had bid for the construction of the LNG Terminal to be constructed at Dahej. In this case, the consortium was awarded a lump sum Turnkey Contract for engineering, procurement, constructi....
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....ld that services provided by the appellants is clearly and explicitly categorized under Consulting Engineering services since the entire project has been clearly bifurcated and each and every stage of the project has been distributed between each member of Consortium therefore cannot be categorized on turnkey basis and the work performed by appellants• is clearly and explicitly more than that of contractor as is evident from the various clauses of the contract and further ordered as mentioned above. 3. The appellants in their appeal before Commissioner (Appeals) contended that the contract entered into by them with M/s. Petronet LNG Ltd. is construction contract on turnkey basis, which cannot be bifurcated. Reliance was placed on Tribuna....
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....ng Procurement Construction Contract would be issued. The Final Acceptance Certificate is the only indicator in the contract which records the full and complete discharge of their/consortium's obligation under contract. However, the bifurcation of the scope of work has been undertaken to give control over all the aspects of the project to outline the various activities involved therein (including work to be performed by consortium members) and to help determine the milestone payments. In their case, the specific portion of the work was to handle only administrative matter so that the execution of work was properly synchronized and also executing the work for the construction of two storage tanks which includes making off-shore and shore sup....