TMI Blog2012 (7) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... e normal period of limitation. Demand is barred by limitation. Appeal is allowed on merits as also on limitation. - Service Tax Appeal No.453 of 2007 - ST/635/2011 - Dated:- 7-12-2011 - Archana Wadhwa, Mathew John, JJ. For Appellant: Shri Sandeep Mukherjee, CA For Respondent: Shri R K Gupta, DR Per: Archana Wadhwa: The brief facts of the case are that the appellant is engaged in providing consultancy to the Government bodies and State Industrial Development Corporation, Government of Madhya Pradesh for their respective Municipal Industrial water supply projects. The services provided by them were in the form of technical assistance, financial services, liaison and interaction with the aforesaid statutory bodies and ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing authority confirming demand of service tax amount of Rs.3,09,596/- along with interest in terms of the provisions of Section 73 of the Finance Act, 1994. Penalty of identical amount was imposed under Section 76 of the Act and Rs.1000/- under Section 77 of the Act. Further, a penalty of identical amount was imposed under Section 78 of the Finance Act. 2. The appellant challenged the said order before the Commissioner (Appeals), who also rejected the appeal on the ground that the work assigned to the appellant cannot be divided into distinct stages. In the above proposition, he relied upon the decision of the Tribunal in the case of Daelim Industrial Co. Ltd. vs. C.C.E., Vadodara -2006 (3) STR 124 (Tri-Del.) . Hence the present appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the work can be divided into distinct stages, they are inter-linked, which means that until and unless the preceding stage is completed, the work can not move on to the next stage e.g. the work the preparation of the tender documents, inviting bids and evaluating them cannot be undertaken until and unless the necessary approvals are obtained from the Government and financial institutions. Each step is like a link in a long chain which ends at the stage of the execution of the project. Though there is no doubt that some of the work items like getting the necessary approvals from the Government nd financial institutions, do not require any great technical expertise, they nevertheless cannot be delinked from the main work i.e. execution of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odara - 2006 (3) STR 124 (Tri-Del.) . However, we find that the Larger Bench of the Tribunal in the case of C.C.E., Raipur vs. BSBK Pvt. Ltd. - 2010 (253) ELT 522 (Tri-LB) has overruled the said decision in the case of Daelim Industrial Co. Ltd. vs. C.C.E., Vadodara and has held that composite contract can be vivisected. If that be so, the entire basis of the Revenue's case is no longer available. 7. Examining from the above angle, we find that admittedly, the appellants were undertaking other jobs also, apart from providing services as consulting engineers. The other jobs like approvals from the Government as also from the financial institution and statutory clearances etc. are admittedly not covered by the definition of 'Consulting En ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatement of facts by the appellants with intention to evade payment of service tax demand. The Commissioner (Appeals) has observed that the said information was in response to the queries raised by Revenue has not come automatically from the appellants. As such, the appellants cannot be held to be bona fide. We find no merits in the above contention whether the information stands given by the assessee, in response to the query by the Department or suo motu the fact remains that the information becomes available to the Department. The show cause notice having been issued on 3.10.2006 for the period 1.10.98 to 31.03.05 is admittedly beyond the normal period of limitation. As such, we hold that the demand is barred by limitation. 8. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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