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TMI Blog2017 (9) TMI 1555X X X X Extracts X X X X X X X X Extracts X X X X ..... r, where service component is not separately mentioned, the composite works contract cannot be divisible prior to 01.06.2007. Scope of SCN - the allegation in the show cause notice is to classify the impugned service as ‘Consulting Engineer Service’ - Held that: - the contract in this case is a works contract and hence the service provided is works contract service. On that ground too, the show cause notice is not sustainable. Time limitation - Held that: - the issue of indivisibility of the works contract prior to 01.06.2007 involved question of interpretation of law - extended period not invoked. Appeal dismissed - decided against Revenue. - ST/557/2011 - F/76139/2017 - Dated:- 22-3-2017 - (Dr.) Satish Chandra, President And M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal and relied upon the C.B.E.C. Circular No.59/8/2003-S.T. dt. 20.06.2003. He stated that they are basically engaged in commissioning and erection of civil and structural works at Digboi Refinery of (IOCL) and they were awarded a contract for the project work on turnkey basis. Since, the primary objective was to construct a full fledged Cone-roof Storage Tank consisting of Civil work, structural work, Mechanical Work, and Instrumentation works, (including purchase of all bought out components and all procurement costs including packing and forwarding etc.), fabrication, etc. taking into consideration all sorts of activities including supply of bought out items, designing which cannot be split into separate component for levy of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... analyzed items other than the DESIGN to quantify the service element in them. We find that in this case nature of contract is admittedly a works contract as is evident from the nature of the contract enclosed with the show cause notice and as has been mentioned in the appeal in the statement of facts. However, where service component is not separately mentioned, the composite works contract cannot be divisible prior to 01.06.2007 as has been held by the Hon ble Supreme Court in the case of CCE, Kerala Vs Larsen Toubro Ltd. - 2015 (39) STR 913 (SC). 7. We also find that the allegation in the show cause notice is to classify the impugned service as Consulting Engineer Service . However, as elaborated above, the contract in this ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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