9911796707
TMI Blog2024 (5) TMI 1054X X X X Extracts X X X X X X X X Extracts X X X X ..... ged in the manufacturing of excisable goods viz Bridge Bearing/Section falling under Central Excise Tariff subheading No.7308 90 90. They have sent their goods to M/s. Hindustan Construction Co. Ltd. (hereinafter referred to as "HCC") for usage in Bandra-Worli Sea Link Project Approach Bridges. They have been awarded a contract wherein the Appellant is required to design THE specifications of the bearings required, supply the same and also install these bearings in the project. The Appellants were clearing the goods on payment of Excise Duty. They were raising two Bills, the first one comprising of 70% of the contract value. On such clearances, the Appellant was making the Excise Duty payment. The balance 30% amount was collected subsequent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Bill under supplementary invoice for the balance 30%. Since there was no supply of material involved in the supplementary invoice, the Appellant was not required to pay any further Excise Duty. In order to link the two activities together, they were raising the supplementary invoice wherein also it was shown that materials were supplied, but in fact it was only towards the service portion of the bearings at the work site. Therefore, he submits that no Excise Duty is required to be paid as demanded and confirmed by the Revenue. 3. He takes further pleading that the bearings installed at the work site have become part of the immovable property. Therefore, even on this count, the additional charges received by the Appellant from HCC canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this case. Therefore, even on this count, he submits that the confirmed demand is liable to be set aside. 6. The Ld.AR for the Department submits that the contract details very clearly shows that they are inclusive of Excise Duty, Education Cess etc.. Therefore, the entire value received by them is inclusive of Excise Duty and is purely on account of supply of material only. If any other services like designing and installation has been taken up, they form a small percentage of the total activity. The main and foremost activity is that of manufacture and supply of the goods. The Appellants have divided their total Bill into 70% and 30% and paid the duty only on 70% and thereby avoided payment of Excise Duty on the balance 30%. He further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act into two parts and paid any Excise Duty on 70% of the value treating the same as the value of goods supplied. For the balance 30% value of the contract, they have not paid any Excise Duty. We are of the view that for the second portion of this contract value amounting to 30% realization by the Appellant would in fact should be termed as service and the Department should have demanded Service Tax on the same. Considering the fact that the main contractor HCC was awarded the contract under "Works Contract" and both materials and services are involved even in respect of the goods to be cleared by the Appellant, it is clear that designing, installation etc. form part of the services rendered by the Appellant. Therefore, we hold that the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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