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TMI Blog2007 (6) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... Ispat Nigam Limited (NINM) and the appellant was liable to pay Service tax for the engineering consultancy service rendered. Ld. Commissioner (Appeals) found that the appellant not having executed a composite works contract on turnkey basis was not entitled to the benefit of the judgment made in the case of Daelim Industrial Company Ltd. v. CCE - 2006 (3) S.T.R. 124 (Tribunal) = 2003 (155) E.L.T. 457 (Tribunal). 2.1 The ld. Counsel appearing for the Appellant submitted that having executed part of a composite contract with the contractee Nilachal Ispat Nigam Limited (NINL) and such contract being a segment of the total turnkey contract of setting up of a sinter plant by the principal contractor M/s. Chine Iron and Steel Industry and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayable for the contract executed was described in schedule 2 to the agreement was a price for these services rendered, the services were themselves inextricably connected with the turnkey project. The project being to set up a sinter plant, the object was not to simply render service of designing and engineering but to fulfil object of the turnkey project. Therefore, a part and parcel of the entire contract cannot be tested brushing aside intended purport and object of the turnkey project. The ld. Counsel relied on the judgment of the Tribunal in Daelim Industrial Company Ltd. case (supra) and all other Tribunal judgment in the same line. 3. The ld. JDR submitted that the services rendered by the appellant was purely of the nature of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 8-8-1997. The undisputed performance guarantee of the plant was of the principal contractor. This is sufficient to indicate that the purpose of the contract was to set up a sinter plant instead of the service rendered solely as consulting engineer. No doubt, the principal project was a turnkey project and not disputed by both the parties. It was also not disputed that rendering of service was a part and parcel of such project. Rendering engineering consultancy being a secondary object of the principal object of setting up of a sinter plant, the appellant is not disentitled to get the benefit of judgment in Daelim Industrial Company Ltd. case (supra) in view of composite contract executed by a Consortium. There was no dispute also that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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