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2019 (7) TMI 258 - AT - Service TaxTechnical inspection and certification services - reverse charge mechanism - section 66A of Finance Act, 1994 - HELD THAT:- It is only a ‘technical inspection of certifying agency’ that was intended to be the object of the tax and that service had to be rendered in relation to such ‘technical inspection and certification’ - Notwithstanding the fact that the local suppliers released payments to the appellant only upon the issue of certificates, the service does not involve any information and nor does it contain technical information that required some expertise. Furthermore, the final inspection report prepared by the appellant, and relied upon in the show cause notice, were also retained by the appellant in their records indicating that these are not the material form of the services rendered. The decision of the Tribunal in M/S. AT & CO. VERSUS C.S.T. DELHI [2016 (12) TMI 929 - CESTAT NEW DELHI], has laid down the principle that mere inspection, or certification, which does not have to fall back on any expertise of scientific or technical knowledge would not find coverage within this taxable service. We also take note that the role of the appellant in the entire transaction is to act as the agent of the overseas entity for the limited purpose of approving the shipments on the basis of certain specifications indicated by the overseas customers. The levy of tax on an activity that does not fall within the scope of section 65(105)(zzh) of Finance Act, 1994 cannot be approved. The matter remanded back to the original authority to decide on the merits of the demand taking note of our adjurements on the legality of levy under each of the services and for ascertainment of the tax on any consideration that remains sustainable thereafter - appeal allowed by way of remand.
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