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2018 (5) TMI 1467 - AT - Service TaxTechnical Testing and Analysis Services - respondent is a statutory body set up by Government of Tamil Nadu as per the Tamil Nadu Water Supply & Drainage Board Act, 1970 (TWAD Act) created to carryout works related to water and drainage schemes in Tamil Nadu - Board Circular 89/7/2006-ST dt.18/12/2006. Held that: - the testing done by TWAD is a statutory duty and the fees collected is a statutory fees - there is no service provider – service recipient relationship between TWAD and the contractors and as such there is no taxable event - Consideration presupposes a certain level of reciprocity. In the instant case it is TWAD who wants to ensure the quality of the pipes used in the Water Supply and Drainage Schemes floated by them. Therefore it cannot be said that the testing is done for the contractor and that a service is rendered to him. The testing fee therefore does not take the colour or character of ‘consideration’. There is no ‘service’ rendered by TWAD to the contractor and the fees collected is not a consideration that can be subject to levy of service tax under the Finance Act, 1994 - Appeal allowed - decided in favor of appellant.
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