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TMI Blog2013 (1) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... onomous body under the administrative control of Ministry of Surface Transport, Government of India, and is engaged in providing services in the fields of integrated ship design, consultancy, maritime economics, research and development. The services being provided by the respondent include design (tender design to production drawings) of all kinds of floating structures and also providing consultancy in the fields of techno economic evaluation of vessels, model testing etc. 3. On a suspicion that the respondent was evading payment of Service Tax under the provisions of the Finance Act, 1994 on "Consulting Engineering Services" provided by it to clients, the Head Quarters Preventive Unit of the Central Excise Commissionerate, Visakhapatnam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,804/- (Rupees forty seven lakhs forty three thousands eight hundred and four only) should not be paid by them under Section 73(a) and Section 68 of the Finance Act, 1994. (iii) the amount of Rs. 15,58,750/- (Rupees Fifteen lakhs fifty eight thousand seven hundred and fifty only) paid by them vide TR6 challans dated 21.2.2002 and 3.6.2002 should not be adjusted against the Service Tax payable under (ii) above. (iv) Interest at the rate of twenty four percent per annum as applicable under Section 75 of the Finance Act, 1994 on the amount of Service Tax payable as at (ii) above should not be demanded from them. (v) the penalties under Sections 75A, 76,77 and 78 of the Finance Act, 1994 should not be imposed on them." 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified in demanding service tax for the period prior to 16.7.2001 on research related projects; that the Assessing Authority mechanically passed the order treating their services as "Consulting Engineering Services" without appreciating the difference between the "research consultancy" and "Consulting Engineering Services" and therefore the order of the Assessing Authority is unsustainable. The Commissioner (Appeals) by order dated 30.12.2005 held that the subject "research oriented scientific activity" became taxable only with effect from 16.7.2001, that till such time it was not covered under the head "Consulting Engineering Services"; that the respondent by letter dated 25.9.2002 had submitted a detailed calculation indicating Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Senior Counsel for the appellant contended that the services provided by the respondent fall under the category "Consulting Engineering Services" or "Scientific and Technical Consultancy Service", that the respondent was liable to pay Service Tax from 7.7.1997 on its activities as there is no scientific research in their activities. 12. Admittedly, levy of Service Tax on "Consulting Engineering Services" was introduced with effect from 7.7.1997 by notification No.23/97 dated 2.7.1997 under the Finance Act, 1994 through the Finance Act, 1997. It is also not disputed that " Scientific or Technical Consultancy " was brought under Service Tax net with effect from 16.7.2001 only. 13. The assessee/respondent was not only providing "Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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