2015 (7) TMI 819 - CESTAT MUMBAI (LB)

Invocation of extended period of limitation - Willful suppression of facts - Works contact - lump sum turnkey contract - A lot of emphasis have been given by the senior counsel that the department had knowledge about their activities. - Held that:- So far the first question referred is concerned whether the works contract can be vivisected even prior to 1.6.2007 and the service portion discernible in the contract can be subjected to levy of Service Tax, the same as indicated by the learned third Member is covered by majority decision (five Members Bench) of this tribunal in the case of L&T Ltd. vs. Commissioner of Service Tax, Delhi (2015 (3) TMI 748 - CESTAT NEW DELHI (LB)), the issue stands covered in favour of the Revenue and against the assessee i.e. the indivisible works contract can be split up for the purpose of levy of Service Tax prior to 1.6.2007.

In 2003, when the new service 'installation and commissioning' was introduced, the appellant themselves were vivisecting the lump sum turnkey contracts and were to collect service tax under the category of consulting engineering service. There was no reason whatsoever not to charge, collect and pay the service tax in similar manner in respect of installation and commissioning service when separate consideration for that service was already available in each of these contracts, and installation and commissioning was the dominant service in these contracts. - this is a clear cut case of wilful statement as also suppression of facts. Submissions of some letters/contracts in the facts of this case will not make any difference. - Decided against Assessee.