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TMI Blog2017 (4) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... able to tax as sale of goods is covered under works contract service. Admittedly, in the contracts now under consideration there were transfer of property in goods which are directly involved in the exclusion of work by the appellant. As such, we find that the findings of the Original Authority is without any basis and cannot be legally sustained - appeal allowed - decided in favor of appellant. - Service Tax Appeal No.51493 of 2014 - ST/A/53023/2017-CU[DB] - Dated:- 24-4-2017 - Shri Dr. Satish Chandra, President And Shri B. Ravichandran, Member (Technical) Shri Prashant Shukla, Advocate for the appellant Shri Amresh Jain, Authorized Representative (DR) for the respondent ORDER Per: B. Ravichandran The app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of the decision of Hon ble Supreme Court in CCE CUS, Kerala vs. Larsen Toubro Ltd. reported in 2015 (39) S.T.R. 913 (S.C.) . He submitted that the Original Authority has completely misdirected himself in deciding the classification of the service by holding that the appellants have rendered service under tax category of erection, commissioning and installation of machinery and equipments. It was held that the work in totality falls under the said tax entry. The learned Counsel submitted that the Original Authority inferred that as the bill details indicated value of material supplied and the civil work executed, the same can be considered in the overall scope of installation and commissioning of supplied goods. The learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the contracts were for track installation from one designated place to another and supply of rails, fastening etc. Two contracts are for design, supply, installation, testing and commissioning of traction power, power supply, power distribution and SCADS for Metro Corridor. Each contract had specified date of commencement and completion alongwith contract value. We note that the Commissioner in the impugned order only focused on statutory definition of tax entry under Section 65 (105) (zzd) of the Finance Act, 1994 with reference to erection, commission or installation service. He reproduced the statutory definition as obtained during various periods and thereafter examined the meaning of installation , plant etc. He also recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation : For the purposes of this sub-clause, works contract means a contract wherein, I (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 prefabricated 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 works, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility in respect of similar work executed by various contractors for DMRC. In this connection, we refer to a recent decision of the Tribunal vide final order 50485-50490/2017 dated 23/01/2017 in the case of M.M. Constructions ors. The Tribunal held as below :- 9. Admittedly, in all the cases before us the contracts for providing services of erection, installation and supply of materials either to DMRC/Indian Railways are composite in nature. This fact is not in dispute. In such situation, it is clear that there can be no tax liability on such contracts prior to 1.6.2007, on which date the new tax entry Works Contract Service was introduced in the Finance Act, 1994. For the period post 1.6.2007, the services rendered to railways ..... X X X X Extracts X X X X X X X X Extracts X X X X
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