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2022 (9) TMI 902 - CESTAT NEW DELHILevy of Service Tax - Off-shore Engineering and Technical services - composite engineering, procurement and construction (EPC) contract on a turnkey basis - independent contract or not - whether no part of the contract could have been separately subjected to levy of service tax by treating it to be a service rendered by a consulting engineer? - Extended period of limitation - HELD THAT:- A works contract means a contract for the purpose of carrying out, amongst others, turnkey projects including EPC projects. The Commissioner did record a finding, after perusal of the five contracts, that the Guarantee Agreement for EPC contract on turnkey basis is the base contract for the other four contracts, but observed that since the scope of work in all these four contracts is different for different prices, the four contracts are independent of each other and, therefore, would individually be subjected to levy of service tax. The Supreme Court in Larsen and Toubro [2015 (8) TMI 749 - SUPREME COURT] held that works contract service became taxable w.e.f. 01.06.2007 and that any segment of works contract service was not taxable under a different category. The submission advanced by the Revenue that service tax was payable on the amount earmarked for drawing, design, etc., activities in a works contract under the category of consulting engineer service was repelled. Such being the position, it would not be necessary to examine the remaining contentions advanced by learned counsel for the appellant that the Off-shore services could not have been taxed in India or that the extended period of limitation could not have been invoked. The impugned order dated 31.01.2007 passed by the Commissioner cannot be sustained and is set aside - Appeal allowed - decided in favor of appellant.
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