2006 (7) TMI 681 - AT - Service Tax

Summary

Issues involved: Determination of service tax liability for the activity of providing training on High Performance Liquid Chromatography Systems.

Summary:
The appeal arose from an Order-in-Original confirming service tax on the appellants for providing 'Commercial Training and Coaching Services' to clients for technology usage. The Commissioner categorized the activity as 'Consulting Engineer' services under section 65(25) of the Finance Act, 1994. The appellants argued that their training service was not 'Consulting Engineer' but fell under 'Commercial Training and Coaching' services effective from 1-7-2003. Despite the Assistant Commissioner dropping proceedings, the Commissioner upheld the tax demand. The appellants contended that their training did not involve engineering advice or consultancy, citing a Ministry's Instruction to support their position.

Upon hearing both parties, the Tribunal found that training individuals on complex machinery did not constitute 'Consulting Engineer' services as claimed by the appellants. They were not providing engineering advice or consultancy. The Tribunal referenced various judgments to support their decision, emphasizing that the training activity did not fall under the 'Consulting Engineer' category. The Tribunal granted full waiver of pre-deposit based on the prima facie nature of the case and relevant legal precedents. Consequently, the Commissioner's order was set aside, and the appeal was allowed with any necessary relief.