TMI Blog2019 (8) TMI 1236X X X X Extracts X X X X X X X X Extracts X X X X ..... s an autonomous organisation. The statute does not place any responsibility upon the society. The society provides training and consultancy in the field of environment - The definition of State under Part-III (Fundamental Rights) of the Constitution of India does not extend to several other parts of the Constitution or to other laws. In Para-III, the definition of State is meant to determine which are organisations have a responsibility to ensure right to equality, equality in matters of public employment , etc. - what the appellant was doing is more or less akin to the job of a Chartered Accountant with respect to the Income Tax Act, Companies Act, etc. Scientific and technical consultancy service - liability of service tax - the Assis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order-in-Revision No. 1/2007 dated 21.03.2007 passed by the Commissioner of Customs and Central Excise, Hyderabad. Heard both sides and perused the records. 2. The facts of the case in brief are that the appellant herein is engaged in providing consultancy, research, technical assistance and training in matters related to environmental issues to various organisations including Regulatory Bodies, Government Departments, NGOs etc. The main objective of the institute is to provide technical assistance and consultancy in applied research and training services in the area of environmental protection to various organisations in the fields related water and waste water treatment, air pollution control, Environmental Impact Assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed the demand only on the report preparation part of the income amount to ₹ 5,34,633/- being the amount relatable to report preparation. 3. This order of Assistant Commissioner was revised by the Commissioner of Customs vide the impugned order and he held that the service rendered by the appellant cannot be vivisected into components. After perusing the work orders of the appellant, he found that the agreements were entered into by the appellant with their clients for a comprehensive service in the nature of consultancy services. Preparation of report, testing, inspection etc., are various activities which are integral part of the scientific and technical consultancy services. Therefore, the nature of services being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statutory functions and should not be taxed. c) Most of their activities pertain to preparation of reports such as environmental impact assessment reports and environmental management plans for various projects which is a pre-requisite to obtain clearance from the Ministry of Environment. Accordingly, their activity should be considered as a statutory function and should not be taxed. 5. Learned DR draws the attention of the Bench to the sample copy of report submitted by the Learned Counsel for the appellant titled environmental impact assessment and environmental management plan for the proposed Sri Ram Sagar Project, Stage-II and would assert that the report in question has been prepared by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nition would not mean that the appellant is rending any serving functions. They are but a consultancy firm. He would, therefore, submit that the appellant is liable to pay tax for the taxable services rendered by them. As far as the training component of the service is concerned the demand has already been dropped by the Assistant Commissioner and it is not appealed against by the department. As far as the consultancy part is concerned, as can be seen from the Order-in-Revision, the contracts entered into by the appellant were for a composite service which has many parts such as testing, report preparation, advice etc. All these put together fall in the category of scientific and technical consultancy service. Such a service has to be class ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also misplaced. The judgment was in the context of Article 12 of the Constitution of India i.e., whether with respect to fundamental rights, such societies are also State . The definition of State under Part-III (Fundamental Rights) of the Constitution of India does not extend to several other parts of the Constitution or to other laws. In Para-III, the definition of State is meant to determine which are organisations have a responsibility to ensure right to equality, equality in matters of public employment , etc. 7. The next issue to be decided is whether the appellant is liable to pay service tax under the head scientific and technical consultancy service . The definition of scientific and technical consultancy service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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