TMI Blog2016 (9) TMI 690X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of the supervision charges are-reimbursement of establishment charges by the MP government to them. - Demand set aside - Decided in favor of assessee. - ST/324/2011-CU(DB) - Final Order No-53153/2016 - Dated:- 22-8-2016 - Smt. Archana Wadhwa, Member (Judicial) and Shri V. Padmanabhan, Member (Technical) For the Appellant, Shri Sanjay Kumar Tiwari, C.A., Advocate For the Respondent/Revenue, Shri Ranjan Khanna, AR ORDER The present appeal has been filed against the order dated 22th of October 2010, passed by the Commissioner, Bhopal. The M.P police housing corporation is an agency set up by the government of MP, for implementing the police force modernisation scheme of Central and State government. The appellant i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the construction on behalf of the government. It is not rendering any advice or consultancy to the government and there is no consultancy agreement with the government. The appellant is only an implementation agency and have carried out the work on behalf of the government. In the absence of a relationship between service provider and recipient, it cannot be said that technical consultancy has been rendered. They have also relied upon several case laws to support their case. 3. We have heard Shri Sanjay Kumar Tiwari, the learned counsel for the appellant as well as Sh. Ranjan Khanna, the learned DR for the revenue. 4. For better appreciation, we reproduce below the definition of Consulting Engineer Services under Section 65(31):- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rges and why they have been paid to the appellant by the Madhya Pradesh government. Before alleging that these are payments received towards consulting engineer services, revenue should have looked into the basis for payment of such charges. We find that no such effort has been made by revenue. The claim of the appellant is that the supervision charges, which is worked out by the State Government as a certain percentage of the total work executed by the corporation, is nothing but reimbursement of establishment charges like salaries and allowances, travelling, conveyance, etc. It would appear that the establishment cost has been assumed by the revenue as service charge for engineers appointed by the corporation. We find no basis for the vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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