Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 1058 - CESTAT NEW DELHI

2015 (12) TMI 1058 - CESTAT NEW DELHI - 2016 (42) S.T.R. 37 (Tri. - Del.) - Demand of service tax - Consulting engineer service - Held that:- Appellant was given the work which included design, engineering, procurement, manufacture, supply, civil works, erection, testing commissioning, reliability run, demonstration of performance guarantees as well as total project management in an integrated manner and on turnkey basis, and any other works reasonably required for the completion of the Facility .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

en & Toubro (2015 (8) TMI 749 - SUPREME COURT). - period of dispute in this case is August 2003 to November 2005. Thus during the relevant period, the appellant being a body corporate was not covered under the definition of consulting engineer as per the above quoted judgement of Delhi High Court and consequently, the service rendered by the appellant could not be classified under Consulting Engineer Service under which the impugned demand is confirmed. - impugned demand is not sustainable. - De .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

₹ 10,42,71,437/- was confirmed along with interest and penalties on the ground that the appellant had provided consulting engineer service to M/s BALCO in terms of Contract No. BALCO-SEPCO-02 for engineering and technical services for the captive power projects. 2. Ld. Advocate for the appellant has essentially argued/ contended that : (1) It had a contractual obligation with BALCO to procure, set up and bring into commercial operation captive power plants at their site. The scope of acti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and Technical Services for the Captive Power Plant Project. Contract No. BALCO-SEPCO-03: On shore Supply contract for the Captive Power Plant Project Contract No. BALCO-SEPCO-04: On shore Services & Construction Contract for the Captive Power Plant Project (3) As per the bidding document issued by BALCO the scope of work was described as under : The scope of Works of SEPCO, in accordance with the Specification for EPC Contract attached to the Notice inviting Tender issued to SEPCO on 4th Fe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l Proposal) and Volume III (Bid Proposal Sheets) on turnkey basis, SEPCO shall also be responsible for the successful execution of performance guarantees tests for the entire Plant. (4) The price as per bidding document was quoted on a turnkey basis for the entire project at US D 228923000/- and the payments were depending upon various stages of completion of project as a whole. The performance parameters were also stated unit wise for each unit and the bank guarantee of 10% of the total contrac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

herein the Supreme Court held as under: Upon a careful reading of this agreement, we are satisfied that the contract though, for the sake of convenience, was split up into four sub- contracts (viz. the four work/ purchase orders), was a composite contract executable on a turnkey basis. The terms of this turnkey contract were reduced into writing by the "wrap-around agreement" of 10.5.2000. We are of the definite view that under the "wrap-around agreement", the Appellant had t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nded for both purposes: for securing the advances paid to the First Respondent and also for securing due performance of the contract. Ld. Advocate for the appellant stated that the principle set out in the foregoing para of Supreme Court judgement in case of Fenner India Ltd. (supra) is applicable to the present case also. He also referred to the judgement of Tribunal in the case of CCE & Customs, Vadodara Vs. Larsen & Toubro 2006 (4) STR 63 (Tri.-Mumbai) wherein the ld. DR s argument th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or four 135MG power plants, it had entered into four separate independent contracts and the contract in question was purely a sweat contract and did not involve supply of any goods at all. Each contract laid down its own terms and conditions and its own scope of work, responsibility and obligation value etc. and therefore the judgements cited by the appellant are not applicable. The manner of payment or the enforceability provisions do not take away from the fact that the contract in question wa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bly required for the completion of the Facility and/or for safe, trouble free, normal operation of the facility. Therefore, there is force in the appellant s contention that merely because it had entered into four contracts for completing the scope of work would not take away from the fact that it was an operation of erection and commissioning on a turnkey basis and therefore the service rendered was works contract service which was not liable to service tax prior to 1.6.2007 in the light of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

roperty in goods involved in the execution of such contract is leviable to tax as sale of goods, and ii. such contract is for the purposes of carrying out,- a. erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or e. turnkey projects including engineering, procurement and construction or commissioning (EPC) projects The particular contract under consideration is however not a works contract per se, because there was no transfer of property in goods involved in the execution of that contract. The contention of the appellant is that it entered into four contracts for the sake of operational convenience and the total work was essentially an EPC/turnkey project involving transfer of property in goods levia .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

contract service was rendered. However, such detailed analysis, is rendered unnecessary in this case for reasons that follow. 6. The impugned demand has been confirmed under Consulting Engineer Service. Definition of consulting engineer during the relevant time as given under Section 65(31) of the Finance Act, 1994 was as under : Consulting engineer" means any professionally qualified engineer or an engineering firm who, either directly or indirectly, renders any advice, consultancy or tec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

x Infrastructure and Foundry Works 2014 (34) STR 191 (Del.) held as under : 4. It may be relevant to point out that the words an engineering firm appearing in the above definition, were substituted by the Finance Act, 2006 with effect from 1-5-2006 with the words any body corporate or any other firm . It is, therefore, clear that the expression any body corporate was introduced with effect from 1-5-2006. But, in the present case, the relevant period is 1997-2001. At that point of time, the expre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

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

Go to Mobile Version