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TMI Blog2013 (9) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... oject. Revenue has allowed abatement of 2/3 of value of the contract towards cost of goods which is built into the rate prescribed under works contract whereas the appellant submits the actual value of goods in their contracts were to the tune of 85%. Waiver of pre deposit – 80 lakhs were ordered to be paid – on such submission pre-deposit of the balance dues waived till the disposal – stay granted partly. - ST/222 & 223/2010 - - - Dated:- 28-2-2013 - P K Das And Mathew John, JJ. For the Appellant : Shri N Prasad, Adv. For the Respondent : Shri D P Naidu, Addl. Commr. (AR) PER : Mathew John The appellants are a company having technical expertise in setting up of cement plants. They are engaged in the activity of desi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f roads, airports, railways, transport terminals, bridges, tunnels and dams. Explanation. - For the purposes of this sub-clause, "works contract" means a contract wherein,- (i) transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and (ii) such contract is for the purposes of carrying out,- (a) erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cannot be considered as a turn-key project and it will not fall within the second limb of definition of "works contract" either. He argued more or less on the same lines that the activity would not be covered by "Erection, Commissioning or Installation" falling under other clauses of 65 (105)(zzzza). 5. He also argues that under works contract service the composition scheme could apply only if the appellant had opted for composition scheme as per Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 and since they had not opted, thrusting composition scheme on them is not legally maintainable. Though his arguments were lengthy his submission in short were that the services would not fall under Works Contract Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as a beneficial measure, though not opted by him and he also points out that no opposition to composition was raised before the Commissioner. 7. We have considered arguments of both sides. What we find is that the activity when seen as a whole has got, prima facie, essential characteristics of a turn-key project. The question whether by supply of the goods before commencing of the service to be done or having two separate contracts would disturb the nature of the contract as a works contract or whether the whole activities have to be seen as part of the same contract. This aspect needs to be examined in greater detail at the time of hearing of the appeal. We are also, prima facie, of the view that even if the services are classified und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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