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TMI Blog2023 (4) TMI 1329X X X X Extracts X X X X X X X X Extracts X X X X ..... ature of EPC/Works contract and is not in the nature of Erection and Commissioning. He draws our attention to Para 2 of the show-cause notice which reads as under:- "Intelligence was gathered that the assessee has undertaken the work of supply, installation, testing, commissioning of pumping machinery, transformer sub-station, raising mains including construction of pump house and delivery cistern etc of Tadipudi lift irrigation scheme 2nd pump house at K.M.26.25 on A.G.R.B. near Tadipudi Village, Tadipudi Mandal, West Godavari District, under an agreement entered into with Government of Andhra Pradesh, on which apparently Service Tax was not paid by the assessee." [emphasis supplied] 2. He also takes us through the Agreement dated 22. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "15. A reading of this judgment, on which counsel for the assessees heavily relied, would go to show that the separation of the value of goods contained in the execution of a works contract will have to be determined by working from the value of the entire works contract and deducting therefrom charges towards labour and services. Such deductions are stated by the Constitution Bench to be eight in number. What is important in particular is the deductions which are to be made under sub-paras (f), (g) and (h). Under each of these paras, a bifurcation has to be made by the charging Section itself so that the cost of establishment of the contractor is bifurcated into what is relatable to supply of labour and services. Similarly, all other exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt charged for the works contract less the value of property in goods transferred in the execution of the works contract. This not having been done by the Finance Act, 1994, it is clear that any charge to tax under the five heads in Section 65(105) noticed above would only be of service contracts simpliciter and not composite indivisible works contracts." 5. It is seen that on a similar issue the Coordinate Bench of the Chennai in the case of Real Value Promoters Pvt Ltd cited (supra) has held that even for the period subsequent to June 2007, if a Show-Cause Notice is issued demanding Service Tax under another heading whereas the service pertains to Works Contract, the same does not survive. In this case, the demand is confirmed under Ere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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