2017 (6) TMI 579 - AT - Service Tax

Technical Inspection and Certification Services - levy of service tax - activities of testing of gas cylinders - N/N. 12/2003-ST dt. 20.06.2003 - Held that - Applying the Hon ble Supreme Court judgment in Harshita Handling 2011 (1) TMI 1323 - SUPREME COURT , wit can be concluded that the services of technical inspection and certification services of gas cylinders does not attract levy of service tax, we have no hesitation to conclude that the services rendered by the appellant are not taxable - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Whether the services rendered by the appellant are liable to service tax under "Technical Inspection and Certification Services" and if the benefit of Notification No.12/2003-ST can be claimed.

Detailed Analysis:

Issue 1: Liability to Service Tax
The appellants, acting as an agency for statutory testing of LPG cylinders, were found not discharging service tax on the testing activities. The adjudicating authority held them liable to pay service tax under "Technical Inspection and Certification Services." The Commissioner (Appeals) upheld this decision. The appellants argued that they are entitled to the benefit of materials used for such services as per Notification No.12/2003-ST. The Tribunal considered whether the services provided by the appellants fell under taxable services. The appellants initially accepted that the activities fell under "Technical Inspection and Certification Services" and later claimed exemption under the said Notification. The Tribunal found that the services rendered by the appellant were not taxable based on the judgment of the Hon'ble Supreme Court in a similar case.

Issue 2: Benefit of Notification No.12/2003-ST
The appellants contended that they were eligible for the benefit of Notification No.12/2003-ST on the materials used for rendering the services. However, the Commissioner (Appeals) rejected this claim. The appellants raised additional grounds before the Tribunal, citing a precedent judgment by the Hon'ble Supreme Court. The Tribunal held that before analyzing the eligibility for the benefit of the Notification, it was crucial to determine the taxability of the services. Ultimately, the Tribunal concluded that the services provided by the appellant were not taxable, thereby rendering the issue of claiming the benefit of the Notification irrelevant.

Conclusion:
The Tribunal found that the services provided by the appellant were not subject to service tax under "Technical Inspection and Certification Services" based on the judgment of the Hon'ble Supreme Court. Consequently, the demands were deemed unsustainable, and the impugned orders were set aside, allowing the appeals with consequential relief, if any, as per law. The Miscellaneous Applications were disposed of accordingly.