Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 212 - AT - Service TaxNature and classification of service - Works Contract services or not - It appeared to the department that the activity undertaken by them under various work orders is in the nature of Works Contract Services, for which, the appellants have not discharged service tax - period from 01.06.2007 to 31.12.2007 - Held that:- Sub-clause (i) of the Explanation provides that Works Contract means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods. The second clause enumerates the various services that would make the activity a Works Contract. Clause (e) specifies about the turnkey projects which involve both design, engineering as well as installation and commissioning activity. In the case before us, it is correct that in the agreement dated 26.11.2002 entered by the appellants with the foreign collaborator. The agreement is to undertake projects in the nature of turnkey projects also. From all these works orders, which are the subject- matter of the demand, it is concluded that the work undertaken by the appellants are only design, engineering, documentation, manufacture and supply of equipment/machinery and design involved in erection and commissioning of such machinery. The appellants have not undertaken any erection and commissioning activity as provided in sub-clause (a) or (e) of the definition of Works Contract Service. The supervision of erection and commissioning cannot be equated with civil work of erection and commissioning or installation of plant and machinery. When the appellants have not done any erection and commissioning activity. The levy of service tax under WCS is not attracted. The demand cannot sustain under Works Contract Services - appeal allowed - decided in favor of appellant.
|