2007 (6) TMI 108

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ted 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 Trade Group Corporation (CSGC) the appellant cannot be said to have executed an independent contract. With a view to monitor different aspects of the turnkey project of the above plant, the appellant .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ject 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 consulting engineer as detailed out in schedule 2 and for that they were paid as per schedule 3 to the agreement. Therefore, the authorities below have very rightly brought the appellant to the ambit of the ta .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d 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 the nature of the activity to be carried out by the appellant as stated in schedule 2 to the agreement and the consideration payable as per schedule 3 to the agreement were for different purposes including the designing a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X