2018 (7) TMI 266

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..... under the said category for services rendered to their customer M/s. Lessac Research Laboratories (P) Ltd. Puducherry (herein referred to as LRL). Later on, on receiving legal advice that the services rendered to LRL does not amount to Technical Inspection and Certification Service, the appellant stopped paying service tax. Show cause notice was issued proposing to demand service tax under the category of Technical Inspection and Certification Service on the income received by the appellant from LRL. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. counsel Ms. S. Sridevi submitted t .....

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..... under the category of Technical Inspection and Certification Service. This is pure admission of the liability of service tax and therefore they cannot contend that it does not fall within the said category. 4. Heard both sides. 5. For better appreciation of the relevant provisions, the same are reproduced as under:- Technical Inspection and Certification under Section 65(108):- "Technical Inspection and Certification" means inspection or examination of goods or process or material or any immovable property to certify that such goods or process or material or immovable property qualifies or maintains the specified standards, including functionality or utility or safety or any other characteristics or parameters, but does not include any .....

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..... ce tax under the particular category of service, the demand proposed in the said show cause notice cannot sustain. Merely because they obtained registration and paid service tax for a short period, they cannot for forced to pay service tax under a category which is not applicable to the appellant or their activity rendered by them. 7. From the discussions made above, we are convinced that the income received from LRL does not fall under the category of Technical Inspection and Certification Service. The impugned order is set aside and the appeal is allowed with consequential relief, if any. 8. The application filed by the Revenue for change of cause title is allowed. (Operative portion of the order was pronounced in open court)
Case .....

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