TMI Blog2015 (10) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... as "engineering consulting". As the disputed projects are not "engineering", they were not taxable during the relevant period. – Decided in favour of the Appellant. - Appeal No. ST/295/2011 - Final Order No. A/2671/2015-WZB/STB - Dated:- 29-7-2015 - M V Ravindran, Member (J) And C J Mathew, Member (T) For the Appellant : Shri Durgesh Nadkarni, Adv For the Respondent : Shri A K Goswami, Addl Commissioner (AR) ORDER Per C J Mathew This appeal of M/s National Environmental Engineering Research Institute (NEERI), Nagpur is directed against the Order-in-Appeal NO. SR/230/NGP/2011 dated 31 st January 2011 of Commissioner of Customs, Central Excise Service Tax (Appeals), Nagpur which has modified the liability of service tax determined by the Deputy Commissioner of Central Excise (Service Tax), Nagpur to the extent of ₹ 1,86,17,905/- for the period July 1997 to March 2001 while upholding the penalties imposed under section 76 and section 77 of Finance Act, 1994 by the original authority. 2. The appellant is a constituent laboratory of the Council for Scientific Industrial Research (CSIR) and is registered under the Registration of Societies Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entry in Wikipedia on the subject of environmental engineer. The learned Counsel for the appellant and learned Departmental Representative too found the allure of the same source to be irresistible- the former to demonstrate the unique functions of the appellant and the latter to portray the appropriateness of the impugned order. Here a note of caution would not be amiss; Wikipedia has universal appeal among internet users because of the range of subjects covered, its widespread accessibility and its amenability to updating but, by reason of the same attributes, it fails to acquire oracular significance. Indutiably, it is a source of knowledge for amateur research and may map out directions for extensive foray into any topic but being subject to emendation at any time from all and sundry, with or without appropriate qualification, it can, at best, fill up gaps that are not particularly critical to a final conclusion. Placing sole or near absolute reliance on its contents for tax determination detracts from the credibility of the findings. 5. Learned Counsel for the appellant contends that NEERI, being a registered society, is not within the ambit of taxable service which is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or operate the same will full cognizance of their design; or to forecast their behaviour under specific operating conditions; all as respects an intended function, economic of operation and safety to life and property. The term engineering is sometimes more loosely defined, especially in Great Britain, as the manufacture or assembly of engines, machine tools, and machine parts. .... The function of the scientist is to know, while that of the engineer is to do. The scientist adds to the store of verified, systematized knowledge of the physical world; the engineer brings this knowledge to bear on practical problems. Engineering is based principally on physics, chemistry, and mathematics and their extensions into materials science, solid and fluid mechanics, theremodynamics, transfer and rate processes, and systems analysis. Unlike the scientist, the engineer is not free to select the problem that interests him; he must solve problems as they arise; his solution must satisfy conflicting requirements. Usually efficiency costs money; safety adds to complexity; improved performance increases weight. The engineering solution is the optimum solution, the end result that, tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that all five are engineering projects. While titles may, in general, indicate content, determination of tax liability without examining the specifics is inappropriate. Considering the mandate of the appellant as well as the staffing pattern of the organisation, it is more probable that the projects are research studies which would later require the services of engineers for feasible remedial action. 10. In relation to the second category, substantial reliance has been placed on the same unauthenticated source to hold such assessments to be one facet of environmental engineering. The first appellate authority has further assumed these to be engineering projects because project reports are a requirement of environmental impact assessment stage laid down by the ministry of Environment Forests. It would appear that the scope and depth of environmental impact assessment has not been appreciated in proceedings thus far. Increasing concerns about environmental degradation as a consequence of economic development has compelled governments across the world to require all or certain categories of structures and space utilisation to be preceded by a study of the effect of population and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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