9911796707
TMI Blog2010 (9) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... augmenting agricultural production in the State of Andhra Pradesh. The MoUs referred that each of the projects, prima facie, appears to be an indivisible works contract inasmuch as each project consisted not only of rendering of scientific/technical assistance but also of implementation of a whole project - Though, in the impugned order, there is a finding to the effect that these are divisible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r (J)] . - In this application, the appellant seeks waiver of pre-deposit and stay of recovery in respect of service tax amounting to over Rs. 3.25 crores for the period 16-7-2001 to 31-3-2005, interest thereon and penalties. After examining the records and hearing both sides, we note that the demand of tax is under the head, Scientific and Technical Consultancy service , which became a taxabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l today is as follows : All the projects involve execution of indivisible works contracts and there can be no levy of service tax under any other head. There can be no levy of service tax on any amount not collected by the appellant from the service recipient. Therefore the demand of service tax on a major part of the K-III Project is illegal. Under K-II Project, only those payments of the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of rendering of scientific/technical assistance but also of implementation of a whole project. Apparently, the State Government wanted the appellant to function as a technical implementing and supervising agency to implement the projects for enhancing agricultural productivity of farmers in the state. Though, in the impugned order, there is a finding to the effect that these are divisible contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch the taxable service, which was pressed into service by the Revenue, was introduced in the Finance Act, 1994. The various arguments put forward by the learned counsel have not been successfully rebutted. In the result, there will be waiver of pre-deposit and stay of recovery of the amounts of service tax, interest thereon and penalties. The stay application is allowed. (Pronounced and dictated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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