TMI Blog2019 (8) TMI 1690X X X X Extracts X X X X X X X X Extracts X X X X ..... lant. - Service Tax Appeal No. 58081 of 2013 - FINAL ORDER NO. 51809/2019 - Dated:- 27-8-2019 - SHRI DILIP GUPTA, PRESIDENT AND SHRI C.L. MAHAR, MEMBER (TECHNICAL) Shri A.K. Batra, Chartered Accountant and Ms. Vibha Narang, Advocate for the appellant. Shri Vivek Pandey, Authorized Representative (DR) for the Respondent. ORDER The appellant is duly registered with the Service Tax Department for taxable service of Erection, Commissioning or Installation Service and was discharging its service tax liability as per the provisions of Finance Act, 1994 on these services. During the disputed period 2007-2008 to 2010-2011, the appellant was engaged in the work of execution of contract for the electrification of villages under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). Accordingly, Works Contract dated 14 November 2005 was entered by the appellant with Uttaranchal Power Corporation Ltd. (UPCL), (an undertaking of Government of Uttaranchal) for the work of description Turnkey Execution of the work of Route Survey, Design, Supply, Erection, Testing, commissioning of material, Equipment required for electrification of villages of and their households on T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of pole, Bracings, clamps insulators, stays etc. in Hill areas Sl. No. Description Unit Quantity Rates Amount (in Rs.) 1 Steel tubular poles 8.5M long 410-SP23 Nos 1 8854.25 8854.25 2 Earth Wire clip Nos 1 107.00 107.00 3 Stays complete with stay wire of size SWG 7/10 Nos 1 963.0 0 963.00 4 22 V Pin Insulators with Pin No. l 321.00 321.00 5 V type cross arm with clamps, nuts and bolts Nos l 577.80 577.80 6 Top phase PP and clamps ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able. The dispute, in short, is whether value of items as mentioned under Sl. No. 8 to 11 need to form part of the taxable value for the services rendered by the appellant. During the arguments the learned Counsel appearing on behalf of the appellant has contended that the impugned activity was essentially in relation to laying of cable for transmission and distribution of electricity which is exempted vide Notifications No. 45/2010-ST dated 20 July 2010 for the period upto 21 June 2010 and by Notification No. 32/2010-ST dated 22 June 2010 for the period after 22 June 2010. The contents of the relevant notifications are reproduced below:- Notification No. 45/2010-ST dated 20/07/2010 Regarding levy of service tax on all taxable services relating to transmission and distribution of electricity G.S.R. (E).- Whereas, the Central Government is satisfied that a practice was generally prevalent regarding levy of service tax (including non-levy thereof), under section 66 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act ), on all taxable services relating to transmission and distribution of electricity provided by a person (hereinaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry erection, commissioning and installation services (simplicitor) and no demand has been issued to the appellants under the Works Contract service, hence the demand is not maintainable. It has further been submitted that whether the contracts entered by the party is divisible or indivisible contracts, depends upon the terms of the contract. The terms of the agreement are the decisive factor to understand the divisibility of the contract. In the present case, the contract dated 14 November 2005 is a composite indivisible contract, as would be clear from the following clauses:- Clause 9.3 It is expressly agreed to by the Contractor that notwithstanding the fact that the contract is termed as Supply-cum-erection Contract or indicates the break-up of the contract consideration, for convenience of operation, it is in fact one composite contract on single source responsibility basis and the contractor is bound to perform the total contract as a package and non-performance of any part of portion of the contract shall be deemed to be a breach of the entire contract. Clause 10.5 To complete the electrification of Village/ Hamlet/ Tok will be considered as a whole as a unit. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
