Tax Management India. Com TMI - Tax Management India. Com
Case Laws Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Manuals News SMS Articles Highlights
        Home        
← Previous Next →
  • Contents
  • Cases Cited

 

User Login
Username  
Password  
Stay sign in     

Forget password        New User/ Regiser

 

2016 (5) TMI 455

Head Note:
Benefit of exemption notification no. 25/2012-ST is available or not - Activity of Testing & Commissioning, Integrated Testing & Commissioning and Trial runs of Trains under contract - Installation and commissioning of EMU and the platform - whether in the nature of erection, commissioning or installation of plant, machinery or equipment pertaining to metro - Whether in nature of original work - Held that:- the General Conditions of Contract/ Conditions of Contract mention that tests on completion shall include Integrated Testing, wherein the contractor (applicant) shall follow satisfactory completion of tests on his equipment, sub-systems or systems to verify and confirm the compatibility and compliant performance of his equipment/subsystem/ system with the equipment/sub-system/system provided by others Therefore, based on said compatibility and compliant performance, trial runs for the metro are undertaken. Therefore, this whole process is nothing but commissioning i.e. bringing Rolling stocks into operation.

Therefore, we agree with the applicant that the services provided i.e. in relation to testing & commissioning, integrated testing and commissioning, trial runs of trains, are by way of commissioning.

Works Contract - original work - Held that:- “original work” inter-alia means erection, commissioning or installation of plant, machinery or equipment or structures, whether fabricated or otherwise. - Rolling stock is at least plant and machinery and same would be commissioned by the applicant. Therefore, the applicant would satisfy this condition also i.e. providing services by way of commissioning of original work.

Applicant is eligible for claiming exemption from payment of Service Tax in terms of Notification No. 25/2012-ST dated 20.06.2012 for the activities in relation to Testing & Commissioning, Integrated Testing & Commissioning and Trial runs of Trains to be undertaken under the contract. - Decided in favor of assessee.

 


← Previous Next →

 

 

 

Discussion Forum
what is new what is new
 

Let's just recapitulate:

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.