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2019 (8) TMI 1236 - AT - Service TaxClassification of service - whether the appellant was performing a statutory function? - main objective of the institute is to provide technical assistance and consultancy in applied research and training services in the area of environmental protection to various organisations in the fields related water and waste water treatment, air pollution control, Environmental Impact Assessment (EIA), etc. - HELD THAT:- The appellant is a society registered under Registration of Societies Act by the State Government supported by it but it is an autonomous organisation. The statute does not place any responsibility upon the society. The society provides training and consultancy in the field of environment - The definition of State under Part-III (Fundamental Rights) of the Constitution of India does not extend to several other parts of the Constitution or to other laws. In Para-III, the definition of State is meant to determine which are organisations have a responsibility to ensure “right to equality, equality in matters of public employment”, etc. - what the appellant was doing is more or less akin to the job of a Chartered Accountant with respect to the Income Tax Act, Companies Act, etc. Scientific and technical consultancy service - liability of service tax - the Assistant Commissioner has divided value of the services rendered by them under the scientific and technical consultancy service into testing charges and report preparation charges. He sought classify testing charges under ‘technical testing and inspection services’ and held that the same were exempted as the service was rendered with respect to environmental clearances - HELD THAT:- As per Section 65A of the Finance Act, 1994, where a service is rendered is a composite service consisting a combination of different services it shall be classified as if they consisted of a service which gives them their essential character. In this case, the essential character of the service rendered by the appellant is scientific and technical consultancy service and the same cannot be divided into different services for the purpose of calculation of service tax. This mistake of the Assistant Commissioner was corrected by the Commissioner in his impugned Order-in- Revision. Therefore, we find no infirmity in said order. Appeal dismissed - decided against appellant.
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