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TMI Blog2013 (9) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... vided detailed engineering services including preparation of design and drawings, with or without cost estimation, preparation of tender document and tendering on behalf of the client, preparation of detailed drawings and supervision of work including certification of contractor s bills and disbursement of payments of certified bills to the contractors on behalf of the client. In respect of certain contracts executed by the appellant during March, 2010 to March, 2011, the Department entertained a view that the appellant should have paid service tax on the entire cost of projects executed. The contention of the appellant was that they were only acting as consulting engineer and they were liable to pay service tax on the commission of 5.5% of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the cost of execution of the project would clearly fall under the category of reimbursement of actual expenses and the functions performed by the appellant would clearly show them as a pure agent. Therefore, the demand for service tax is not sustainable. 3. On the other hand, the learned AR would submit from the same contract that the appellant was responsible for execution of the contract and was required to ensure that the contract was executed in accordance with the tender. Unlike the work of a consulting engineer, the appellant was responsible from the initial stage till the end of the project and therefore, the Department is right in holding that the appellant in reality has got the works contract executed as a main contractor and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also specified at each stage. It is also quite clear that the appellant gets the money as the deposit which is required to be paid to the contractor. Further it is also quite clear from the agreement that ultimately when the contract is executed, the property passed to the principal and the appellant does not get any benefit of either of the services or goods both of which will go to the principal only. Prima facie, we find that appellant has made out a case on merits as far as the claim that the appellant is a pure agent is concerned. Therefore, at this stage, in our opinion, this would be sufficient to take a view that there is no requirement of pre-deposit for the purpose of hearing the appeal in this case. Accordingly, there shall be wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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