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TMI Blog2024 (4) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... onstruction of the base. It also required the appellant to ensure that the quality of the materials used were as specified. Thus, there was use of materials in these contracts though not supply of poles themselves. In this case, since the appellant was required to use cement and concrete as per the contracts, they squarely fall under the definition of works contracts under section 65B (54) of the Finance Act. Therefore, the SCN, the OIO and the impugned order were incorrect in assuming that they were not works contracts. The demand, interest and penalties in the impugned order therefore, cannot be sustained. The impugned order is set aside - appeal allowed. - MR. DILIP GUPTA, PRESIDENT AND MR. P.V. SUBBA RAO, MEMBER (TECHNICAL) Shri Dhira ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e period October 2010 to March 2015 along with appropriate interest. It was also proposed to impose penalties on the appellant under section 77 and 78 of the Finance Act, 19945. These proposals were confirmed in the OIO and upheld in the impugned order. Submissions on behalf of Appellant 5. Learned counsel for the appellant submits that the appellant s contention during the investigation, before the original authority and the Commissioner (Appeals) was that it was awarded contracts which included the use of materials and hence they fall under the category of Works Contracts as defined in section 65B(54) of the Finance Act and therefore it was required to pay service tax only on 20% of the value of the contracts which the appellant had paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etion, fitting out, repair, maintenance, renovation, alteration of any moveable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property. 9. As per the above definition, works contract is one: (a) wherein there is transfer of property of goods involved in executing the contracts; (b) such transfer of property is leviable to tax as sale of goods; and (c) the contract is for one of the purposes indicated therein including erection, commissioning and installation. 10. Of the above, (c) is fulfilled in the contracts as according to both parties, the contracts were for erection, commissioning and installation. The two questions to be answered are whether there was transfer of property of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made; 13. Evidently, if any goods are used in executing a works contract, the property in them is transferred to the service recipient. For instance, if a contractor builds a house for a house-owner and the contract includes the bricks, cement, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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