2017 (10) TMI 452

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..... cuted by them are excluded in the definition of “works contract service” by Explanation (ii)(b) in section 65(105)(zzzza) of Finance Act, 1994 as the recipients are municipal corporations and government bodies - Held that: - much after the issue of the impugned order a finality on the nature and taxability of this much-litigated service has emerged with the decision of the Hon’ble Supreme Court in .....

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..... in the specifically described components of section 65(105)(zzzzd) of Finance Act, 1994, each of these will have to be scrutinized - appeal allowed by way of remand.
Shri M V Ravindran, Member (Judicial) And Shri C J Mathew, Member (Technical) Shri Gajendra Jain, Advocate with Shri Aditya Jain, CA for the appellant Shri D. Nagvenkar, Addl. Commissioner (AR) for the respondent ORDER Per: C J .....

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..... thereof or pipeline and conduit' and not to 'turnkey projects including engineering, procurement and construction or commissioning projects.' The findings are based on the breadth of activities in the contract commencing with designing and ending with commissioning and that no component of the contract is amenable to segregation which would bring it under the coverage of one of the distinct activi .....

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..... s are liable to be taxed only with effect from 1st June 2007 when 'works contract services' was legislated into Finance Act, 1994 by express incorporation of section 65(105)(zzzza). In the various decisions which held the field till then, vivisecting of composite contracts was considered to be legal and proper for levy of tax on the service component of the contracts. The adjudicating authority pr .....

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..... tment plants, would fall within the specifically described components of section 65(105)(zzzzd) of Finance Act, 1994, each of these will have to be scrutinized. It is only thereafter that the tax liability, if any, can be determined in terms of the Explanation (iii)(d) in section 65(105)(zzzza) of the Finance Act, 1994. To enable this to be done, we set aside the impugned order and remand the matt .....

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