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TMI Blog2005 (10) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... hey filed ST 3 return for the period ending 30-9-2003 claiming exemption in respect of erection and commissioning service. This category of service is brought under service tax w.e.f., 1-7-2003. It was submitted by the appellants that the goods are cleared on payment of central excise duty on the whole value of contract. The original authority held that the appellants are liable to pay 33% of the gross value of the contract as per notification No. 19/2003-S.T. dated 21-8-2003 or pay the applicable service tax after availing the benefit of notification No. 12/2003-S.T. dated 20-6-2003 on the commissioning and installation charges collected by them. He imposed a penalty of Rs. 100/- per day under Section 76 of the Finance Act, 1994, after con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provider. The activity of installation and commissioning carried out at the project site by the appellant is not a service activity but a manufacturing activity. CESTAT, Chennai in the case of CCE, Chennai v. Binny Ltd., reported in 2003 (151) E.L.T. 106 (Tri.-Chennai) has held that when duty paid goods are assembled at site, the goods would continue to be excisable goods and liable for excise duty. Further the Ministry has given in their 37B order No. 58/1/2002-Cx., dated 15-1-2002 that the erection, installation charges should be included in the assessable value, if the resultant goods are movable. 4. The learned departmental representative submitted that as stated by the original authority the appellants are liable to pay service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as brought into effect. Just because the appellant had paid excise duty on the erection and commissioning charges, it cannot be held that erection and commissioning cease to be taxable service. The argument that the appellant is not a commissioning and installation agency also does not help the appellants much. An agency may do very many things. If it undertakes commissioning and installation, the gross amount charged for such services would be liable to service tax. Arguing that the agency is not purely rendering the service of commissioning and installation and therefore, it is not leviable to service tax, in my opinion is not a sound one. When a manufacturer after manufacture provides erection, commissioning or installation, definitely t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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