CESTAT : Border-fence erection along Indo-Bangla Border, non-taxable as "erection, commissioning or installation service"
Stand-alone activity of erecting border-fencing structure along the Indo-Bangladesh border, pursuant to MoU between Ministry of Home Affairs and Govt. Agencies, not taxable as “erection, commissioning or installation” service; Circular No. 80/10/2004-ST indicates that Legislature did not intend to tax erection activity separately in relation to objects of levy viz. plant, machinery or equipment, but alongwith commissioning or installation service, when charges thereof are composite; Revenue incorrect in interpreting that addition of expression “structure - pre-fabricated or otherwise” brought significant change in said entry so as to tax stand alone activity of erection of structure; Relying on SC ruling in Paper Products Ltd, CESTAT observes that Circular explaining / clarifying the meaning of ‘erection, commissioning or installation service’ cannot be ignored while interpreting and applying it to facts and circumstances of present case; Refuses to read the word ‘OR’ as ‘AND’ in the definition u/s 65(39a) of Finance Act, intention of Legislature is to tax either commissioning or installation alongwith erection under clause (i) or installation activities mentioned in subsequent part i.e. under clause (ii) therein : Kolkata Tribunal