2008 (8) TMI 154 - AT - Service Tax

Appellants are challenging the finding of the Tribunal where they were held liable to ST w.e.f. 16-6-2005 under category of erection, commissioning and installation services - This is a clear cut finding of the Tribunal on going through the contract held that, now we cannot reverse our finding and say that the appellant would fall under service of works contract - This will amount to a review of our own order no error apparent on record - application for rectification of mistake rejected

Summary

Issues: Rectification of Mistake application regarding the liability for service tax on turnkey projects and works contract.

Analysis:
The appellant filed a Rectification of Mistake (ROM) application concerning the Final Order dated 12-2-2008, where they were treated as a "works contractor" for undertaking "Turnkey Projects." The appellant argued that they should only be liable for service tax from 1-6-2007 onwards, as works contracts became taxable from that date. The Tribunal's finding in the order was that the appellants were liable for service tax from 16-6-2005 under "erection, commissioning and installation services." The appellants contended that their services should fall under works contract on a turnkey basis, making them liable for service tax only from 1-6-2007. The Tribunal, after careful consideration, upheld its decision that the services provided fell under "erection, commissioning and installation service" from 16-6-2005, granting the benefit of a specific notification and allowing input credit. The Tribunal emphasized that reversing this finding would amount to reviewing its own order, suggesting the appellant should pursue normal appeal channels if they disagree. The ROM application was rejected as there was no error apparent on the face of the record, and the findings were based on a thorough examination of the contract.