2010 (8) TMI 293 - AT - Service Tax

Waiver of pre-deposit Technical Inspection and Certification Service - Technical and Certification Agency and has not issued any certificate - certificate issued after degassing and purging is in respect of LPG tankers, which are utilized by them for transportation of LPG - Appellant cannot be called to have rendered technical inspection and certification to themselves - applicant has made out a prima facie case for the waiver of pre-deposit of the amounts involved - waiver of pre-deposit allowed

Issues:
1. Whether the applicant should be liable for service tax, interest, and penalties for providing 'Technical Inspection and Certification Service.'
2. Whether the applicant qualifies for the benefit of Notification 12/2003-S.T., dated 20-6-2003.
3. Whether the definition of 'Technical Inspection and Certification' under the Finance Act, 1994 applies to the activities of the applicant.

Issue 1: Liability for Service Tax, Interest, and Penalties
The case involved a dispute regarding the liability of the applicant for service tax, interest, and penalties arising from providing 'Technical Inspection and Certification Service' related to degassing and purging LPG tanks used for transportation. The Revenue contended that these activities fell under the purview of the said service. However, the applicant argued that the definition of the service did not cover their activities as they involved the cost of materials. The Tribunal examined the submissions and found that the applicant did not qualify as a Technical and Certification Agency, as they did not issue any certificate. Therefore, the Tribunal held that the applicant had a prima facie case for the waiver of pre-deposit of the amounts involved, allowing the application and staying the recovery until the appeal's disposal.

Issue 2: Benefit of Notification 12/2003-S.T., dated 20-6-2003
The applicant sought the benefit of Notification 12/2003-S.T., dated 20-6-2003, which required examination. The learned Counsel for the applicant argued that the activity undertaken included the cost of materials, warranting the extension of the notification's benefit. The Tribunal considered the invoices provided, indicating a clear bifurcation of costs, supporting the applicant's claim. On the other hand, the learned DR argued that the issue needed further examination. The Tribunal did not provide a conclusive decision on this issue in the judgment.

Issue 3: Definition of 'Technical Inspection and Certification'
The Tribunal analyzed the definition of 'Technical Inspection and Certification' under the Finance Act, 1994, which included certifying goods or processes meeting specified standards but excluded services related to pollution levels. The services were required to be rendered by a 'technical testing and analysis agency' to any person in relation to technical inspection and certification. In this case, the Tribunal noted that the applicant was not a Technical and Certification Agency and had not issued any certificate. Therefore, the Tribunal concluded that the applicant did not provide technical inspection and certification to themselves, supporting their case for the waiver of pre-deposit.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the Tribunal's decision on each issue, preserving the legal terminology and significant phrases from the original text.

← Previous Next →