Erection, Commissioning, Installation of ATM Machines — Works Contract

• In this case, there was a works contract for supply, erection and commissioning
  of Automatic Teller Machines (ATM) for banks — Impugned order in
  question noted that works contract is indivisible —It was held that Service Tax not leviable on indivisible
  works contract before 1-6-2007 — For period before 1-6-2007, ratio of decision
  in Daelim Industrial case (2006) 3 STR 124 (Tribunal)] as affirmed by Supreme
  Court applicable — Taxable event for levying Service Tax not present during
  impugned period — ATM related services became taxable from 1-5-2006 — Service
  Tax liability absent for material period — S. 65(9b), S. 65(39a) and S.
  65(105)(zzzza) of the Act.

•  Turnkey project — Liability to Service Tax. Taxing event is execution of turnkey
  project involving sale of ATMs to banks — Installation and commissioning are
  incidental activities — Works contract for supply and commissioning of ATMs not
  taxable before 1-6-2007 in the absence of charging provision — Ambiguity not
  accepted by tax law — Charging
  provision to be found in statute itself, and where there is none in statute,
  they cannot be supplemented by notifications — S. 65(105)(zzzza) of the Act.

• New services — Effect of introduction — Introduction of new entry presupposes
  non-coverage by pre-existing entries — Addition of an item in list of taxable
  service is just an addition and not subtraction from a pre-existing entry.

”