2009 (4) TMI 175 - AT - Service Tax

Technical Inspection and Certification Service - contention of the applicants that they are not rendering service on profit motive but as a free service has been found to be factually incorrect as they had collected a certain amount as consideration for the services rendered by them during the period in dispute and further there is no exemption to laboratories of the Government bodies like the applicants from payment of service tax. No prima facie case for total waiver has therefore been made out by the applicants

Summary

The Appellate Tribunal CESTAT, Chennai upheld a service tax demand of Rs. 2,56,952 plus penalty of Rs. 500 on the applicants for not paying service tax on "Technical Inspection and Certification Service" rendered from 1-7-2003 to 30-9-2004. The applicants were directed to deposit the balance tax amount of Rs. 2,47,448 within 8 weeks, failing which the appeal would be dismissed. Compliance was to be reported by 3-7-2009.