TMI Blog2019 (3) TMI 1504X X X X Extracts X X X X X X X X Extracts X X X X ..... demands confirmed under ECIS where the works executed are of composite in nature involving both supply of materials and provision of services, the demand requires to be set aside - the entire demand under ECIS, which involves both labour and materials prior to 01.06.2007 is set aside. For the period after 01.06.2007, for all the amounts which have been confirmed under ECIS, wherein, the contracts are of composite nature involving both supply of materials and provision of services the demand cannot sustain as per the decision of the Tribunal in the case of M/s. Real Value Promoters. Pvt Ltd., [2018 (9) TMI 1149 - CESTAT CHENNAI]. As such, the demands after 1/6/2007 under the category of ECIS for composite contracts are set aside. Penalties - Held that:- The issue whether composite contracts are subject to levy of service tax was contentious during the relevant period. Taking note of this fact that the issue being interpretational one, the penalties imposed in regard to the demands confirmed under WCS after 1/6/2007 is unwarranted and requires to be set aside, which we hereby do. Thus, the penalties imposed in regard to WCS after 01.06.2007 are set aside in toto. The demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by him in the table as shown below:- Sl. No. Period Erection Commissioning or Installation Services [Amount: in Rs.] (1) (2) (3) 01 01.10.2005 to 31.03.2006 5,67,465 02 01.04.2006 to 31.03.2007 16,17,850 03 01.04.2007 to 31.03.2008 19,32,823 04 04.04.2008 to 31.03.2009 19,56,606 05 04.04.2009 to 31.03.2010 10,71,733 4. According to him, in show-cause notice para 12, it is stated that in respect of works involving both supply of materials and rendition of services, the services are to be classified under ECIS for the period from Oct.'05 to 31st May, 2007. The appellants are engaged mainly in providing services of Electrical Installation Work/ Works contract for installation of electrical devices or equipments to customers like Southern Railway, Trichy and Madurai, M/s. BHEL, Trichy and various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d upon the decision of Tribunal in the case of M/s. Panther Detective Services Vs CCE reported in 2006 (4) S.T.R. 116 (Tri. Del.). 8. The learned Authorised Representative for the Revenue Ms. T. Usha Devi, DC(AR) supported the findings in the impugned order. She argued that the adjudicating authority has rightly confirmed the demands for the period after 01.06.2007 under ECIS as well as under WCS. The contracts are composite in nature involving supply of materials and rendition of services. Therefore, the activities like Installation of Electrical and Electronic Devices would fall under ECIS and certain works executed would fall under WCS. The demands confirmed are legal and proper and prayed not to interfere with the impugned order. 9. Heard both sides. 10. These appeals are filed by M/s. KEW and M/s. SPEW, who are two proprietorship concerns owned by Shri S. Packiaraj. In para 31 of the impugned order, it is seen that both these concerns had combined account books and all the payments were received under the above names and accounted for income-tax statements filed in the name of Shri S. Packiaraj only. As the service provider was maintaining consolidated accounts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of M/s. Larsen Toubro Ltd., (supra) has held that for the period prior to 01.06.2007, the demand in respect of contracts of composite nature cannot sustain. Following the said decision, we are of view that the demands confirmed under ECIS where the works executed are of composite in nature involving both supply of materials and provision of services, the demand requires to be set aside, which we hereby do. Thus, the entire demand under ECIS, which involves both labour and materials prior to 01.06.2007 is set aside. 13. For the period after 01.06.2007, for all the amounts which have been confirmed under ECIS, wherein, the contracts are of composite nature involving both supply of materials and provision of services the demand cannot sustain as per the decision of the Tribunal in the case of M/s. Real Value Promoters. Pvt Ltd., (supra). As such, the demands after 1/6/2007 under the category of ECIS for composite contracts are set aside. 14. The appellants have submitted that they are not contesting the demand confirmed under WCS after the period 01.06.2007. Needless to say that the demand prior to 01.06.2007 under WCS, if any, cannot sustain as per the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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