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2011 (3) TMI 546 - AT - Service TaxDemand - The allegation against the Appellant is that though they were providing taxable services of Consulting engineers even during the period prior to 1-8-2003, they neither took service tax registration nor paid any service tax on the same - Time barred - whether a contract is a composite contract for sale of goods as well as providing of service, depends upon whether there is such intention in the contract and such intention has to be ascertained from the terms of the contract - A contract would be an indivisible contract for a particular service if the intention of the contract is providing that particular service for some consideration and use of other service/services or goods or both is incidental - If the work contract is an indivisible work contract for a particular service and that service is taxable under section 65(105), Service Tax will be chargeable and the question whether the work contract is divisible or indivisible is irrelevant - In the present case, while some contracts are purely for design and engineering, in all other contracts, the contracts contain clauses for design and engineering for which separate charges are mentioned Since during the period for July 1997 to January 2004 neither service tax registration for consulting engineer’s service was obtained, nor ST-3 returns were filed, penalty under section 77 has been rightly imposed on the Appellant for contravention of the provisions of sections 69 and 70 of the Finance Act, 1994 read with rules 4 and 7 of the Service Tax Rules, 1994 - Appellant’s conduct during the period of dispute amounts to suppression of facts, as while they were providing the consulting Engineering service, taxable since 7-7-1997, they till mid January 2004, neither informed the Department about this activity, nor applied for service tax registration, nor paid the service tax - Appeal is dismissed
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