2010 (9) TMI 797 - AT - Service Tax

Technical inspection and certification service - assessee was earlier registered with the revenue as provider of construction service and was paying service tax accordingly - The only contention of the revenue is that prior to 1-7-2003, the appellants were providing consulting engineer service which also includes technical inspection and certification service. - held that - in view of the decision of the Tribunal in the case of Indian Institution of Quality Assurance (2008 - TMI - 32931 - CESTAT, CHENNAI), no infirmity in the impugned order. - The appeal filed by the revenue is dismissed.

Summary

Issues:
Interpretation of scope of service tax prior to and after 1-7-2003 for technical inspection and certification service.

Analysis:

Issue 1: Scope of service tax pre and post 1-7-2003 for technical inspection and certification service

The appeal was filed by the Revenue against an order where it was held that prior to 1-7-2003, the respondents were not providing technical inspection and certification service, as it fell under the service tax scope only from 1-7-2003. The Revenue argued that before 1-7-2003, the appellants were providing consulting engineer service, which included technical inspection and certification. They relied on a Tribunal decision to support this claim. On the other hand, the respondents contended that the service tax scope was extended to cover technical inspection and certification service only from 1-7-2003, making them liable to pay service tax from that date. They cited a Tribunal decision that supported their position. The Tribunal found that technical inspection and certification service fell under the service tax scope from 1-7-2003. The Tribunal distinguished an earlier case cited by the Revenue, stating that the facts were different. The Tribunal highlighted that in a similar case, where technical inspection and certification service was considered part of consulting engineer service, the demand was set aside. Relying on previous Tribunal decisions, the Tribunal concluded that the impugned order had no issues, and the Revenue's appeal was dismissed.

In conclusion, the Tribunal upheld that technical inspection and certification service came under the service tax purview from 1-7-2003, and the appellants were not liable to pay service tax for that service before that date. The decision was based on the interpretation of relevant laws and previous Tribunal judgments, emphasizing the specific date from which the service fell under the service tax ambit.