9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (5) TMI 51 - AT - Service TaxClassification of taxable service technical testing and analysis service appellant filed claims for refund of service tax on the ground that service tax was not applicable on marking fees under the category of Technical Testing and Analysis held that the scope of service definitely includes inspection/examination and certification claim of refund rejected.
Issues:
Claim for refund of service tax on marking fees under the category of "Technical Testing and Analysis" services. Analysis: The appellants, cement manufacturers, obtained a license from the Bureau of Indian Standards (BIS) for the ISI mark on cement bags. They sought a refund of service tax on marking fees, arguing that service tax did not apply to marking fees under "Technical Testing and Analysis" services. However, their claim was rejected, stating that marking fees were liable to service tax under "Technical inspection and certification" services. The lower appellate authority upheld this decision, leading to the current appeal. During the hearing, it was noted that Section 65(108) of the Finance Act, 1994 defined 'technical inspection and certification' services, encompassing the inspection, examination, and certification of goods or processes to ensure they meet specified standards. The Bureau of Indian Standards (Certification) Regulations, 1988 outlined the process for granting a license to use the standard mark, emphasizing the importance of certification as a mark of quality. The Commissioner (Appeals) correctly determined that the marking fee collected by BIS was integral to the services provided, making it part of the taxable service value as per Section 67 of the Finance Act, 1994. The judgment upheld the lower authorities' decision, emphasizing that the marking fee charged by BIS was to be included in the taxable service value. The appellants' argument regarding input credit eligibility was not addressed as it was not raised earlier. However, they were advised that they could pursue this plea if permissible under the law.
|
