Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2015 (12) TMI 1058

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... or 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 judgement of Supreme Court in the case of Larsen & 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 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ontract for the Balco Captive Power Plant Project. Contract No. BALCO-SEPCO-02: Contract for Off shore Engineering 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 February, 2002, shall include planning, design, engineering, project management, manufacture procurement supply, o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ntract 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 the right to encash any or all of the guarantees for any breach in any of the terms of the four contracts. Hence, we are unable to accept the submission of Mr. Sorabjee that the first three bank guarantees were only for securing the advances paid and that it was only the fourth bank guarantee (No. 291/99 dated 23.3.2000) that was liable to be called for failure to perform the co .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ble. The manner of payment or the enforceability provisions do not take away from the fact that the contract in question was an independent legally enforceable contract and the service rendered there-under was Consulting Engineer Service. 4. We have considered the contentions of both sides. It is seen that the 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 and/or for safe, trouble free, normal operation of the facility. Therefore, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... escape staircases or elevators; or b. construction of a new building or a civl structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commercde or industry; or c. construction of a new residential complex or a part thereof; or d. completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); 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 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... renders any advice, consultancy or technical assistance in any manner to a client in one or more disciplines of engineering. Hon ble Delhi High Court in the case of CCE ST. Vs. Simplex 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 expression any body corporate was not included in the said .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates