TMI Blog2017 (5) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... nal in the case of Mitsui & Co. Ltd. [2013 (3) TMI 228 - CESTAT, KOLKATA] has held that the supply of imported and indigenously procured drawing and designs, treating them as goods, cannot form part of tax liability under “Consultancy Engineer Service”. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No.50665/2014 (DB) - Final Order No.52864/2017 - Dated:- 7-4-2017 - Shri S.K. Mohanty, Member (Judicial) and Shri B. Ravichandran, Member (Technical) Rep. by Shri Somnath Shukla, Advocate for the appellant. Rep. by Shri Ranjan Khanna, DR for the respondent. ORDER Per B. Ravichandran: The appellant is aggrieved by the order dated 30.09.2014 of the Commissioner of Central Excise, Raipur. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 65(31) of the Finance Act, 1994. A tax liability of ₹ 54,30,038/- was confirmed against the appellant along with penalties under Section 76 and 77 of the Finance Act, 1994. 3. Ld. Consultant appearing for the appellants submitted that in respect of the training service provided by GAMI, the issue was settled in their favour by the Tribunal vide Order No.62211 dated 2.12.2011. Regarding technical engineering service provided by GAMI in India, the appellant had already discharged the service tax under the category of Engineering Consultancy Service . As such, the present appeal is with reference to the confirmed service tax liability on the value of the engineering drawing and design imported by the appellant from GAMI. Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Service is in relation to advice, consultancy or technical assistance in any manner in one or more discipline of engineering including the discipline of computer hardware engineering . Admittedly, in the present case, the appellant imported the engineering drawing and design in physical form and filed the bills of entry for clearance through customs as goods. The present service tax liability is on the very same value of engineering design and drawing, which were put to assessment by customs. The Original Authority while examining this issue held as below - 5.9 The Noticee has also contended that the drawings, designs and related process for establishing aluminium producing commercial plant were provided to them by GAMI in paper for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Original Authority held that primary importation part is covered by the Customs Act and the succeeding part of the providing service by GAMI is covered by the Finance Act, 1994. Admittedly, we are dealing with the same value of engineering design and drawing. It is also relevant to note that the importation had been done by the appellants and not by GAMI, who provided Engineering Consultancy Service to the appellants in terms of the contract. Whatever fee is charged by GAMI for providing engineering consultancy in India has been subjected to service tax and there is no dispute on that ground. We find that the Original Authority admitted that the engineering drawing and designs are to be treated as goods and were processed through customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pith and substance a tax on services and not a tax on sale of goods or at hire-purchase activities. Their Lordships have come to the conclusion that a tax on services rendered on mandap keeper and outdoor caterers is in pith and substance a tax on services and not a tax on sale of goods or on hire-purchase activities. The ld. Spl. Counsel also referred to the judgment of the Hon ble Supreme Court in the case of Idea Mobile Communication Ltd. v. Commr of C.Ex. Cus., Cochin - 2011 (23) S.T.R. 433 (S.C.). The issue in that was whether the value of SIM Card would form part of the taxable value for the purpose of levy of Service tax. It is held that SIM Cards are not sold as goods independently from the services provided. They are considered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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