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2017 (5) TMI 653 - CESTAT AHMEDABADConsulting Engineering Service - scope of services - CBEC Circular No. B 43/5/97-TRU dated 02.07.1997 - activity of providing Design, Drawing and Documents etc under the contact for supply and erection of 6 Moulded LPG Storage Systems-Bullets to M/s IOCL - Whether service tax is chargeable in the category of Consulting Engineers Service on the activity of providing Design, Drawing and Documents etc under the contact for supply and erection of 6 Moulded LPG Storage Systems-Bullets to M/s IOCL, Barauni? - Held that: - the demand pertains to the period prior to 2006 and the appellants are a company. In these circumstances the appellants do not come under the definition of consulting engineer in terms of Section 65(31) of the Finance Act 1994. Thus the demand under the head of Consulting Engineercannot be sustained against a company. The proceeding cannot therefore be sustained against the appellant and demand of tax, interest and penalties has to be set aside. Whether service tax is chargeable in the category of Consulting Engineers Service on similar activities undertaken by the appellants in respect of other clients under the Purchase Orders/Contracts during the period 1997-1998 to 2001-2002? - Held that: - All contracts in the disputed period are similar to the contract produced by the appellant in case of IOCL - the demand under the category of consulting engineering service dropped. CBEC Circular NO.B.43/5/97-TRU dated 02-07-1997 does not deal with the services in the nature of works contract service where the Hon Apex court has held that no tax can be levied prior to introduction of works contract service. The assessee are not covered by definition of Consulting Engineer Service - appeal dismissed - decided against Revenue.
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