TMI Blog2008 (6) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... mber (J) S/Shri P.K. Sahu and Prashant Shukla, Advocate, for the Appellants. Shri Amit Jain, DR, for the Respondent. [Order per P.K. Das, Member (J)] - The Applicant filed this application for waiver of pre-deposit of tax of Rs. 2.11 Crores approximately and penalties. 2. The relevant facts of the case, in brief, are that the Applicants entered into contracts with Delhi Metro Rail Corporation, New Delhi (in short, "Delhi Metro") for setting-up to signalling systems, mostly used by Railways viz., Audio Frequency Tracking System. The scope of such contract included supply of equipments as well as rendering of services, viz Consulting Engineers Services, erection, installation and commissioning. It has been alleged that the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er on the basis that Daelim Industrial Co. Ltd. (supra) is not applicable as after 46th amendment of Constitution of India, whereby State may levy Sales Tax on the basis of Contract, equally applicable to Service Tax. He submits that Supreme Court in the case of Bharat Sanchar Nigam Ltd. Vs. Union of India - 2006 (3) SCC 1 held that 46th amendment applies to Sales Tax/VAT. 4. Ld. DR reiterates the findings of the Commissioner of Central Excise. He further submits that the case of Daelim Industrial Co. Ltd. (supra) is relied upon by the decision of the Hon'ble Supreme Court in the case of State of Punjab Vs. Associated Hotels India Ltd. - 1972 (1) SCC 472, which is prior to 46th amendment of the Constitution of India. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Revenue is that Works Contract is divisible into different identifiable activities and the appellant is liable to pay service tax on Consulting Engineers Service on the basis of Cost Centres. The contention of Revenue is that after 46th amendment of Constitution of India, it is permissible to levy sales tax on the material used in Works Contract, which would apply to levy of service tax, would be looked into in detail at the time of appeal hearing. 6. In view of the above discussions, we find that the Applicant made out a prima facie for waiver of pre-deposit of entire amount of tax and penalties. Accordingly, the pre-deposit of tax and penalties is waived till the disposal of the appeal. However, the appeal relates to huge amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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