9911796707
TMI Blog2012 (6) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... iters whereas the present case the contract is for sophisticated machines like ST SCAN R.O. System etc. which can not be compared with the typewriter. 4. That the appellant craves the leave to add, amend, modify, delete any of the grounds of appeal before or at the time of hearing." 3. The brief facts for the assessment year 2008-09 are that the assessee is a Govt. Medical College at Jammu. The assessee had entered into contracts with a number of parties for maintenance of various equipments and made payments to them and deducted tax u/s 194C of the Act. In two of the parties tax was deducted u/s 194J of the Act . In other cases, the assessee had deducted tax u/s 194C of the Act, whereas the AO under section 201(1) & 201(1A) had observed that the assessee had made payments for technical services and therefore, had made a short deduction and late payment of tax and total demand was Rs. 2,64,390/- for the financial year 2007-08 and Rs. 7,73,570/- for the financial year 2008-09 was raised. The Ld. CIT(A) in his order at pages 5 & 6 observed as under: "In respect of all the other contracts they are found on different footing as they all are for routine maintenance. In those ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not to be treated in default." 4. The Ld. CIT (DR) Sh. Laxman Singh argued and invited our attention to the various provisions contained in the contracts submitted and various paras of the order u/s 201(1) & 201(1A) that only services are technical services, which required a special skill and the same cannot be done otherwise than by a technical or a professional person. For the meaning assigned to the term 'fees' for technical services, the Explanation (2) to section 9(1)(vii) has to be taken into consideration. Mr. Laxman Singh, the Ld. DR further invited our attention to the agreement with M/s. Thermtronics Krilsoker Pvt. Ltd; for maintenance of theatre and surgical for which specialist is required who will visit and carry out the maintenance service and also emergency break down calls. Similarly, findings of the AO were shown to the Bench with regard to the RO system maintenance by M/s. Ridham Marketing Services, CT Scan system by M/s. Wipro GE Medical System and MRI machine by M/s. Siemens Ltd; and Lift maintenance by M/s. Otis Elevator as well as sterlisation and medical equipment by M/s. Xpert Technical Services and Anti Termite Treatment by M/s. Global Pest Control Organ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax effect is less than the prescribed monetary limits in respect of one assessee. 6.1 After considering the said Instruction of the CBDT, before us, identical issue is involved in appeals for two different years by a composite order of the Ld. CIT(A) dated 27.01.2011 for the assessment years 2008-09 & 2009-10 respectively, where the composite tax demanded is more than Rs. 3,00,000/- and, therefore, as per the said Instruction No.3 of 2011 of CBDT (supra)the appeal of the revenue is maintainable. Therefore, the preliminary objection of Ld. AR is rejected. 6.2 As regards the appeal on merits, as argued by both the parties and facts available on record, we are of the view that whole issue is with regard to the contracts entered into by the assessee, which is a Govt. Medical College at Jammu, has entered into agreements with various parties to maintain operation theatre and surgical equipments, RO system, CT Scan Machine, MRI machine, Lift, Sterlisation and Medical equipments along with Anti-termite treatment and also there were contracts for supply of Bread and Butter and supply of security and personnel. As regards supply of Bread and Butter and supply of security and personne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provision of services of technical or other personnel, is a part of technical services and fees paid for that shall be considered for the purpose of section 194J of the Act. In the present case, on perusal of the various agreements placed on record by the assessee that firstly with regard to Theatre and Surgical operation with M/s. Thermtronics Krilosker Pvt. Ltd. As per conditions mentioned in the agreement in clauses (i) to (vi), the services of a technical qualified person are to be made available to the assessee to maintain equipments and therefore, the said technical services as per CBDT Circular 715 dated 8.8.1995 cannot be services of routine and normal maintenance. The operation Theatre and Surgical are highly technical equipments for the operations of the persons. Therefore, they cannot be maintained in a routine or normal manner, but a technical person is required for maintenance of such equipments.. Similar is the case with RO system, CT Scan Machine, MRI Machine, Lift and sterlisation & medical equipments for the agreements made between M/s. Ridham Marketing Services, M/s. Wipro GE Medical System, M/s. Siemens Ltd; M/s. OTIS Elevator and M/s. Xpert Technical Service ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
