2006 (2) TMI 660 - AT - Service Tax

Summary

Issues:
Service Tax liability on services provided by the appellant in relation to commissioning, installation, and erection of gas plant and equipment categorized as Consulting Engineer Services.

Analysis:
The primary issue in this case pertains to the Service Tax liability imposed on the appellant for the services provided by them, specifically in relation to commissioning, installation, and erection of gas plant and equipment. The appellant was alleged to be providing services falling under the category of Consulting Engineer Services, thereby attracting Service Tax. However, the Tribunal examined Circular No. 79/9/2004-S.T., issued by the CBEC, which clarified that charges for erection, installation, and commissioning would not be classified as Consulting Engineer Services during the relevant period of dispute from July 1997 to October 2001. The Tribunal referenced the case of CCE v. Gujarat Goldcoin Ceramics Ltd. and an earlier order in DGP Windsor India Ltd. to support their decision. Based on the circular and the precedents cited, the Tribunal concluded that the services provided by the appellant did not fall within the ambit of Consulting Engineer Services. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant.

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