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2018 (6) TMI 673 - AT - Service TaxErection, commissioning and installation service - Composite Contracts - Whether the activity undertaken by the appellant can be treated as composite and indivisible contract so as to be covered by the Hon’ble Supreme Court’s decision in the case of CCE, Kerala vs. Larsen and Toubro Ltd. [2015 (8) TMI 749 - SUPREME COURT]? - Held that:- On a perusal of contract dated 20.7.2005 given by Karnataka Power Transmission Ltd. to the appellants, it is found that, the contract in respect of rearrangement of Hubli Bagalkot 110KV DC Line to link proposed 220KV receiving station Bagalkot is mentioned to be on turnkey basis. Similarly contract in respect of construction of 66KV DC Line from H.N. Pura to SRS Hootagally is mentioned to be on turnkey basis but it has a portion containing supply of materials also - the contracts are though composite are not indivisible - the ratio of the Hon’ble Supreme Court in respect of Larsen and Toubro Ltd. is not squarely applicable in the instant case, as pleaded by the appellants. Applicability of exemption Notification No.45/2010-ST dated 20.7.2010 - Held that:- This exemption appears to be for all taxable services relating to transmission of electricity. Whether the activities performed by the appellant are in relation to the transmission of power? - Held that:- erection commissioning and installation comes within the ambit of the expression ‘in relation to’ - the activity undertaken by the appellants are to be held to fall in the ambit of ‘in relation to’ transmission of electricity in terms of Notification No.45/2010 dated 20.7.2010 as there is a clear nexus between the service rendered by the appellant and transmission and distribution of electricity - the exemption contained in the said Notification is squarely applicable to the appellants. Whether the appellants have correctly availed the Notification? - Held that:- The liability of duty itself is not surviving in view of the exemption Notification No.45/2010 dated 20.7.2010, these issues do not require any consideration at this juncture. Appeal allowed - decided in favor of appellant.
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