2006 (8) TMI 100 - AT - Service Tax

Scientific or technical consultancy services Tax paid under protest Revenue alleged to bring impugned consultancy under category of Consultancy Engineer s Service and rejected refund claim Since impugned service introduced w.e.f. 16.7.01, so tax paid prior to that period is refundable

Summary

Issues:
1. Service tax on consultancy services under Consulting Engineers Services.
2. Refund of service tax paid under protest.
3. Applicability of service tax on scientific and technical services.
4. Validity of the Commissioner (Appeals) decision.

Analysis:
1. The case involved a dispute regarding the payment of service tax on consultancy services under Consulting Engineers Services. The appellants, who were manufacturers of bulk drugs and drug intermediates, were pressurized by officers to pay service tax on consultancy charges. The appellants paid the service tax under protest, which was introduced with effect from 16-7-2001. The Tribunal noted the payment made by the appellants and the introduction of service tax on scientific and technical services.

2. The appellants filed an application for a refund of the service tax paid under protest. The initial order rejecting the refund claim was passed on the ground that consultancy charges fell within the meaning of consulting engineers services. Subsequently, the Commissioner (Appeals) set aside the original order, stating that scientific technical services were covered under service tax with effect from 16-7-2001. The Commissioner held that the tax paid prior to that period was refundable as no service tax was imposable on scientific and technical services in the year 1999-2000.

3. The Tribunal reviewed the grounds of appeal and found no valid reason to set aside or modify the Commissioner (Appeals) decision. The Tribunal concluded that the appeal lacked merits, leading to the rejection of the appeal. The judgment was pronounced in court, affirming the decision to reject the appeal.

This detailed analysis highlights the issues related to service tax on consultancy services, the refund of service tax paid under protest, the applicability of service tax on scientific and technical services, and the validity of the Commissioner (Appeals) decision in the case.