2018 (7) TMI 1286 - AT - Service Tax

Consulting Engineer s service - scope of the definition - Board s Circular No.49/11/2002-ST dated 18.12.2002 - Held that - The service tax under Consulting Engineer is only applicable prior to 01.05.2006 and did not include the private limited company and other corporate body under the Government of Meghalaya in view of the Board s Circular - Appeal dismissed - decided against Revenue.

Summary

Issues:
1. Whether the activities undertaken by the respondent-assessee can be considered as Consulting Engineer's service under Section 65(31) of the Finance Act, 1994.

Analysis:
The appellate tribunal, consisting of Shri P. K. Choudhary, Judicial Member, and Shri Bijay Kumar, Technical Member, heard the appeal filed by the Revenue against the order passed by the Commissioner (Appeals). The Commissioner (Appeals) had set aside the order of the lower adjudicating authority and allowed the appeal of the respondent-assessee, stating that the activities in question did not fall under the definition of Consulting Engineer's service as per Section 65(31) of the Finance Act, 1994. The Revenue contended that the respondent-assessee provided services under this section and should be liable to pay service tax. They argued that the services provided included designing, drawing, and supervision of construction activities, making them subject to service tax. On the other hand, the Respondent-Assessee's representative relied on the definition of Consulting Engineer as per Section 65(31) of the Finance Act, 1994, emphasizing that it applies to professionally qualified engineers or engineering firms and not to corporate bodies. They also referred to a circular by the CBEC and a decision of the Delhi High Court to support their argument.

The Respondent-Assessee's representative highlighted that the definition of Consulting Engineer under Section 65(31) of the Finance Act, 1994, did not include "any body corporate" during the relevant period of 1997-2001. They referred to a decision of the Delhi High Court and a view taken by the Karnataka High Court to support this interpretation. The tribunal, after considering the arguments and legal precedents, concluded that the service tax under Consulting Engineer was only applicable before 01.05.2006 and did not extend to private limited companies or other corporate bodies during the relevant period. They cited the Board's Circular and the Delhi High Court decision as the basis for dismissing the appeal filed by the Revenue.

In summary, the judgment revolved around the interpretation of the definition of Consulting Engineer under the Finance Act, 1994, and whether the activities of the respondent-assessee fell within this definition for the purpose of levying service tax. The tribunal's decision was based on a thorough analysis of legal provisions, circulars, and judicial precedents, ultimately leading to the dismissal of the Revenue's appeal.