TMI Blog2008 (9) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008 - Shri P.G. Chacko, Member (J) Shri P.C. Anand, Consultant, for the Appellant. Smt. R. Bhagya Devi, SDR, for the Respondent. [Order] - The appellants are engaged in the manufacture of anticorrosive cements and coatings, polymer concrete tanks etc. as also in the business of executing turnkey projects for industrial acid-proof constructions, floorings etc. They entered into an agreement with M/s. Mitsubishi Heavy Industries Ltd. for providing supervisory and field engineering services. According to this agreement, the appellants were required to provide supervisory and field engineering services at the site of TISCO (Jamshedpur) at the request of M/s. Mitsubishi Heavy Industries Ltd. (referred to as "the buyer"). The appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he original authority confirmed against the appellants demand of service tax of Rs. 49,695/- under Section 73(a) of the Finance Act, 1994, demanded interest thereon under Section 75 and imposed penalties under Sections 75A, 76, 77 and 78. The appeal preferred by the party to the Commissioner (Appeals) did not succeed. Hence the present appeal. 2. It is submitted by the learned consultant for the appellants that they were only executing the work of getting a job done for M/s. Mitsubishi Heavy Industries Ltd. at TISCO's site and therefore the charges received for such work from M/s. Mitsubishi Heavy Industries Ltd. was not exigible to service tax in the category of 'consulting engineer's service'. No service in the nature of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om this provision of the agreement that these fees and charges were to be paid with reference to the length of stay of supervisor/field engineer at TISCO site. The rates of fees and charges were prescribed in APPENDIX to the agreement and these were also on per head basis. The supervising fee prescribed was Rs. 1,000/man/calendar day. One of the footnotes to the APPENDIX reads as under :- "The Buyer shall not pay and the Seller shall not be entitled to receive compensation for any period during the Supervisor or the Field Engineer is unable to render his service to the Buyer due to sickness, accident, injury or the Seller's other reasons and also any time during which the Supervisor or the Field Engineer works so as to perform the Seller' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operation; technical services etc. The appellants have not questioned the applicability of this Trade Notice, nor is it their case that their supervisors/field engineers were not qualified in any discipline of engineering. Consulting engineer's service defined under Section 65 of the Finance Act, 1994, which was undisputedly a taxable service during the period of dispute, is a service in the nature of consultancy, advice or technical assistance rendered by professionally qualified engineers, engineering firm etc. The nature of services rendered by the supervisors/field engineers of the appellants was no different. The demand of service tax is only to be sustained. 4. The learned consultant has claimed that, in case tax liability exists ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
