2015 (4) TMI 531 - AT - Service Tax

Classification of service - Consulting Engineering Service or Survey and Map Making Service - activity of detailed Route Survey Geotechnical Investigation Soil Investigation Receptivity and Cadastral Survey Geochemical Survey etc. on the basis of engineering survey work of the proposed new location pipe line route survey work detailed route survey bore holes - Held that - activity relating to surveying the projects of M/s GAIL and ONGC would cover the definition of Survey and Road Mapping . - No reason to interfere findings of the Commissioner (Appeal). - Decided against Revenue.

Summary

Issues:
Classification of services under 'Consulting Engineering Service' or 'Survey and Map Making Service' for the period 1999-2000 to 2003-2004.

Analysis:
The appeal involved a dispute over the classification of services provided by the respondent under either 'Consulting Engineering Service' or 'Survey and Map Making Service' for the period 1999-2000 to 2003-2004. The Commissioner (Appeals) had set aside the adjudication order, which was challenged by the Revenue. The main contention was whether the activities undertaken by the respondent fell under the category of 'Consulting Engineering Service' as claimed by the Revenue or 'Survey and Map Making Service' as accepted by the Commissioner (Appeals).

The definition of 'Consulting Engineering' and 'Survey and Map Making' were crucial in determining the classification of services. The definition of 'Consulting Engineer' under the Finance Act 1994 referred to providing advice, consultancy, or technical assistance in engineering disciplines. On the other hand, 'Survey and Map Making' encompassed geological, geophysical, or prospecting surveys of various kinds, excluding mineral exploration. The impugned order detailed the scope of work undertaken by the respondent, including route surveys, geotechnical investigations, and soil surveys for clients like M/s GAIL and M/s ONGC.

Upon examination, the Tribunal disagreed with the Revenue's argument that the services provided fell under 'Consulting Engineering Service'. The Commissioner (Appeals) had analyzed the activities in detail and concluded that they did not involve consultancy, advice, or technical assistance as required for 'Consulting Engineering Service'. The order highlighted that the services were more aligned with 'Survey and Map Making Service' based on the nature of the work and the definitions provided in the Finance Act 1994.

The Tribunal upheld the findings of the Commissioner (Appeals) based on the nature of the activities carried out by the respondent, which were deemed to fall under the category of 'Survey and Map Making'. The Revenue's appeal was rejected, affirming the classification of services as per the impugned order. The decision was grounded in the interpretation of the definitions and the nature of the services provided, ultimately supporting the conclusion reached by the Commissioner (Appeals).