TMI BlogThird Party inspections and certifications — Liability to Service Tax — ClarificationsX X X X Extracts X X X X X X X X Extracts X X X X ..... ifications" carried out by certifying agencies in respect of marine as well as non-marine equipments, can be considered as a service provided by a "consulting engineer" or not. 3. This matter was also raised by two service providers before the Mumbai High Court, in Writ Petition No. 1436/2000. The petition was disposed of by the Hon'ble Court on 11-9-2001 with directions to the Board to issue a Section 37B Order in the matter for ensuring uniformity. 4. The two service providers were heard in the matter on 4th January, 2002. Views of the field formations were also procured. Some of the types of inspection and certification work carried out by the said two service providers relate to :- 1. MARINE (i) New Construction (ii) Per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y role under any Act or regulation, such as Takeover Regulations of SEBI, and do not provide any advice or consultancy but merely verify and submit a report to the concerned authorities, in connection with merger and acquisition transaction, are not treated as Management Consultants . .". The definition of "Management Consultant" also uses the words 'consultancy, advice or technical assistance'. 9. Certificates given under authority of any statute/international protocol /code /convention, cannot be considered to be a consultancy job. It is then to be examined whether this activity can come under the purview of advice or technical assistance. An advice is generally understood to be optional in nature and has no statutory force. It is u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ternational Statute/Convention/Protocol or Code, to determine whether the certificate being given is under the authority of any such statute, convention, protocol or code. If it is so, the payment received for that service will not be taxable under the head "consulting engineer". 12. Any other inspection, survey, assessment, technical assistance, consultancy, recommendation, advice, undertaken/provided directly or indirectly, by the assessee would be liable to Service Tax under the head 'Consulting Engineer'. 13. Suitable Trade Notice may be issued for the information of the trade. 14. Hindi version will follow. 15. The receipt of this order may kindly be acknowledged. - Circular - Trade Notice - Public Notice - Instructions - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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