Customs, Excise and Gold Tribunal - Delhi
Commissioner Of Central Excise vs Shapoorji Pollanji And Co. Ltd. on 29 April, 2005
ORDER
V.K. Agrawal, Member
1. Revenue has filed this Appeal against the Order-in-Appeal. No. 252/04 dated 16.2.04 by which the Commissioner (Appeals) has allowed the Appeal of the respondent M/s Shapoorji Pollanji and Co. Ltd. to the extent of Service Tax paid amounting to Rs. 47,00,000/-. I heard Shri Vipin Verma, learned Departmental Representative and Shri K K Anand, learned Advocate. In this Appeal, the respondents, an engineering firm, executed a turnkey project of 'Multiserve Line 600 BPM Coca Cola Bottling Plant' for M/s. Hindustan Coca Cola Bottling North West Pvt. Ltd for total cost of Rs. 15.25 crores. Out of the said total cost, Rs. 62, 03,987/- were charged by the respondents towards project management and design of the plant, which has been considered by the Revenue as services provided by Consultant Engineering. as defined under section 65(31) of the Finance Act, 1994. On Appeal preferred by the respondents, the Commissioner (Appeals) agreed with their contention that the respondents had obtained the services of M/s. Y.S. Sane & Associates and M/s. Praj Consultants who had paid the Service Tax on the services rendered by them and the Commissioner (Appeals) to that extent allowed the Appeal filed by the Appellants. The Revenue has contended that under Section 67 of the Fiance Act, 1944, Service Tax is payable on the gross amount charged by the Service provider and as such respondents are liable to pay the Service Tax. On the other hand, learned Advocate has contended that it has been decided by the Tribunal in the case of Daelim Industrial Co. Ltd. v. CCE Vadodara that works contract is not liable to Service Tax under the Consulting engineering. services as contract can not be vivisected and part of it (design and detailed engineering, commissioning of plant) subjected to service tax; that the appeal filed by the Revenue is dismissed by the Supreme Court as reported in 2004 (180) ELT A 181 (SC). In view of the decision of the Tribunal in the case Daelim Industries which has been affirmed by the Supreme Court, there is no merit in the Appeal filed by the Revenue as in this matter also, there is a turnkey project which can not be vivisected. The Appeal of the Revenue is thus rejected. The cross Objection filed by the respondents are also disposed of.