TMI Blog2015 (12) TMI 1357X X X X Extracts X X X X X X X X Extracts X X X X ..... d commissioning of electrical sub-stations and external electrification works. After recording such finding, the adjudicating authority has vivisected the said contract and charged service tax liability under "erection, installation and commission" services. We find that the issue is no more res integra as has been decided by the Apex Court in the case of Larsen and Toubro and Ors. reported at [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been claiming before the adjudicating authority that they are engaged in the business of undertaking and executing electrical contracts. The contracts were composite which included supply, erection testing and commissioning of electrical sub stations, underground overhead cabling and wiring and fitting thereof which would fall under the cover of Works Contract and the said contract cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided by the Apex Court in the case of Larsen and Toubro and Ors. reported at Civil Appeal No. 6770 of 2004. We reproduce the said ratio which is in paragraphs 24 and 29 of the judgement. 24. A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter and not to composite works ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oticed that no attempt to remove the non-service elements from the composite works contracts has been made by any of the aforesaid Sections by deducting from the gross value of the works contract the value of property in goods transferred in the execution of a works contract. 29. It is interesting to note that while introducing the concept of service tax on indivisible works contracts various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such contracts, not being exempt under the Finance Act, 1994, would fall within its tentacles, which was never the intention of Parliament. 3.2 In view of the foregoing and the facts and circumstances of this case, we hold that the impugned order is unsustainable and liable to be set aside and we do so. 4. Impugned order is set aside and the appeal is allowed. ( Pronounced in Court on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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