2006 (1) TMI 629 - AT - Service Tax

Summary

Issues:
Challenge to Best Judgment Assessment under Section 72 for consulting engineering services.

Analysis:
The appellant, M/s. Westinghouse Industry Products International Company Inc., contested the order confirming the assessment passed by the Dy. Commissioner, Central Excise, Agra, regarding consulting engineering services provided to clients. The Dy. Commissioner concluded that the appellants rendered services as consulting engineers, leading to a demand of Rs. 2,15,842. The appellant argued that they did not provide advice, consultancy, or technical assistance based on clauses in agreements with clients. They contended that the work executed was part of an integrated turnkey project, not liable to service tax under consulting engineer services. The appellant cited precedents like the case of Daelim Industrial Co. Ltd. v. CCE and Larsen & Toubro Ltd. v. CCE to support their position.

Upon hearing both parties and reviewing the case records, the Tribunal acknowledged the appellant's demonstration that their work constituted a turnkey contract. Considering recent Tribunal decisions, the impugned order was set aside, granting relief to the appellants. The appeal was allowed, and the decision was pronounced on 10-1-2006.