TMI Blog2005 (7) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... C.N.B. Nair, Member (T)]. - The appeal is directed against demand of service tax of about Rs. 12 lakhs and penalties. The demand is in regard to the appellant's receipts in connection with the construction of a hanger for Air India at Mumbai. The lower authorities have held that appellant's role in the construction of the hanger was that of consulting engineer and attracted levy of service tax u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nes the project and states that the project shall mean "construction of the hanger and annexe building along with their respective attendant facilities complete, as provided for in Annexure" Para 2.1 of the contract is as under :- "2.1 AI hereby agrees to award to IRCON the work of undertaking to get done and complete the Project right through and including Project Completion, and IRCON th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tailed designing and engineering". The appellant was also to arrange for procurement of materials, contractors for construction etc. For all these services, the appellant was to be paid 6% of the cost of the project. The learned Counsel for the appellant points out that it is well settled - Daelim Industrial Company Limited v. CCE, Vadodara - 2003 (155) E.L.T. 457 - that construction contracts can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that such construction contracts cannot be subjected to service tax as consulting engineering service, either as a whole or in part. This position remains covered by the decision in the case of Daelim Industrial Company Limited (supra). 7. In view of what is stated above, the service tax demand and the imposition of penalties on the appellant are not sustainable. The impugned order is, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
