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Commissioner of Service Tax, Mumbai-II Versus M/s Global S.S. Construction Pvt. Ltd.

Classification of services provided for the period prior to 01.05.2006 and during the period 2005-06 to 2009-10 - Whether services of maintenance or repair i.e. operation of cooling water system, operation of raw water plant, operation of MP boilers & operation of IG plant & compressed Air system provided by the appellant comes under Management, Maintenance or Repairs - Held that:- the action of the respondent is management of immovable property and nothing has brought to our notice which indica .....

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Respondent : Shri R.V. Shetty, Advocate ORDER PER: M.V. RAVINDRAN: This appeal is filed by the Revenue against Order-in-Original No. 31/ST-II/WLH/2011 dated 23.12.2011 passed by the Commissioner of Service Tax, Mumbai-II. 2. Heard both sides and perused the records. 3. On perusal of records, it transpires the issue that falls for consideration is whether the respondent herein has provided the services of maintenance or repair for the period prior to 01.05.2006 and for the subsequent period under .....

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uthority while dropping the proceeding initiated by show-cause notice are very relevant, which are reproduced. 3.1 A perusal of all the four contracts executed by assessee for providing service to M/s ONGC who have hired the services of the noticee for operation of Cooling Water System, Operation of Raw Water Treatment at Hazira Plant, Operation of MP Boilers & Operation of IG plant & Compressed Air System reveals that as per terms of said contracts, M/s ONGC had agreed to pay fixed amou .....

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t any breakdown. For obtaining desired results, M/s ONGC have laid down certain conditions as per para 2 of the contract (Scope of Work). The contracts clearly indicate that the fees or service charges fixed were only in relation to operation of plant. The contracts do not contain any clause that may suggest that the noticee was required to provide any service relating to Management, Maintenance or Repair to M/s ONGC. The contracts also do not contain any clause regarding payment of any fees/cha .....

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Engineers/Technicians/Coordinators required for smooth operation of plant. The personnel employed by the Noticee for operating the plant of ONGC were not required to provide any, service directly to ONGC. The terms of contract entered into between the Noticee and M/s ONGC clearly indicate that the main function of the Noticee is to operate the plant. The contracts do not contain any clause under which the Noticee is assigned the work relating to Management, Maintenance or Repair. The; running ma .....

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ii) Running maintenance of mechanical equipments in work areas, iii) Dechoking, depressurizing, air blowing and inertisation of pipelines and tanks as and when required, fixing connection of hoses, cleaning of pipes/drainage under plant premises of the area, attending leakages on flanges including tightening of bolts, plugs etc. iv) Operation of battery limit valves of the work area, dosing of chemicals/special chemicals, preparing documents for Cooling Water Systems in given formats, providing .....

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.2 The Borad s Circular F. No. 334/4/2006 TRU, dated 28/02/2006 and 334/1/2008/TRU, dated 29.02.2008 presented by the noticee have been seen. It is found that the Board has taken a consistent view that a composite service, even if it consists of more than one service, should be treated as a single service based on the main principal service and accordingly classified. The guiding principal in deciding on question of facts and law is to identify the essential features of the transactions. Classif .....

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ture of ancillary elements to operate the plant. It is thus established that the main or principal service provided by Noticee is 'Operation of Plant' of M/s ONGC and merits classification under Business Support Service as per enlarged scope of Business Support Service with effect from 01.05.2011. The above conclusion is duly supported by various case laws cited by the Noticee. 3.3.3 Once it is established that the service provided by Noticee is covered under Business Support Service, th .....

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