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2014 (10) TMI 26 - AT - Service TaxConsulting engineering service - Penalty u/s 78 - Held that:- As per the Section 65(31) of the Finance Act, 1994 “Consulting Engineer” means “any professionally qualified engineer or an engineering firm who either directly or indirectly, renders any advice, consultancy or technical assistance in any manner to a client in one or more disciplines of engineering”. In the present case, it is seen that the appellant had undertaken the inspection of the equipment and given suggestions to their client for improving the efficiency. Inspection of equipment does not come under the category of “Consulting Engineers Service” and this Tribunal in the case of MRF Ltd. case (2004 (10) TMI 10 - CESTAT (CHENNAI)) has held that such activity would come under “scientific and technical consultancy service”. Further it is seen that the “Consulting Engineers Service” rendered by “body corporate and other firms” came under the taxable net only with effect from 18-5-2006. Prior to that date the service tax levy applied only to services rendered by a professionally qualified engineer or engineering firm. The appellant is a manufacturer of excisable goods and therefore, it cannot be said that the appellant is an engineering firm rendering engineering consultancy - Decided in favour of assessee.
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