2013 (8) TMI 903 - AT - Service Tax

Summary

Issues involved: Appeal against demand of Service Tax for Consulting Engineer Service u/s 65(31) of the Finance Act, 1994.

Summary:
The appellant, a body corporate engaged in chemical manufacturing, appealed against a demand for Service Tax categorized as Consulting Engineer Service u/s 65(31) of the Finance Act, 1994. The appellant argued that as a manufacturing entity, they do not fall under the scope of Consulting Engineer Service, citing the definition provided in the Act and referencing a decision by the Hon'ble Karnataka High Court. The revenue contended that the appellant did provide Consulting Engineer Service in various fields to clients, justifying the demand. The Tribunal noted the definition of Consulting Engineer Service under Section 65(31) of the Finance Act, 1994, and referenced the Karnataka High Court decision which clarified that companies were not included under this definition prior to a certain amendment. Considering this, the Tribunal set aside the demand, ruling in favor of the appellant due to their nature as a manufacturing entity. The appeal was allowed, granting the appellant any consequential relief as per the law.