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2020 (1) TMI 379 - AT - Service TaxClassification of services - Survey and Map-making service or not - appellant technical support services to civil engineering projects undertaken by the Government agencies such as Rural Panchayath Engineering Department, Irrigation Department and Public Works Department - Board s Circular No.B1/06/2005-TRU dated 27.7.2005 - HELD THAT - It is not disputed that the appellants during the relevant period were providing technical support service to civil engineering projects undertaken by the Government agencies and therefore, by the definition of taxable service, the activities undertaken by the appellants are excluded from the scope of taxable service of Survey and Map-making. Further, this has also been clarified by the Circular issued by the Board dated 27.7.200 - Further, we have also examined the definition of Consulting Engineering Service and the activities carried out by the appellant do not fall in that category. If the activities of the appellant fall under the Consulting Engineering Service , then there was no necessity to carve out specific service of Survey and Map-making Service with effect from 16.6.2005. In the case of BOARD OF CONTROL FOR CRICKET IN INDIA (BCCI) VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI 2007 (5) TMI 24 - CESTAT, MUMBAI , it was held that the assessee s service cannot be taxed prior to 16.6.2005. In the said decision, the Tribunal has held that a subsequent entry having been enacted covering the activity without any change of the existing entry, the same has to be interpreted as if the earlier existing entry did not cover the subsequently created entry. The impugned order is not sustainable in law - appeal allowed - decided in favor of appellant.
Issues:
Appeal against demand of service tax, education cess, and interest; Classification of services under 'Consulting Engineering Services'; Exclusion of Survey and Map Making Services from levy of service tax; Interpretation of relevant legal provisions and circulars. Analysis: The appeal challenged an order confirming service tax demand, education cess, and interest, while setting aside penalties under Sections 76, 77, and 78. The appellant, registered under 'Consulting Engineering Services', provided technical support to government projects without paying service tax. The appellant argued that their services fell under Survey and Map Making, excluded from taxable services, citing legal definitions and circulars. The Commissioner (A) partially allowed the appeal, prompting the current appeal. The appellant contended that the impugned order misinterpreted the definitions of 'Consulting Engineering Services' and 'Survey and Map Making Services'. They argued that their activities were excluded from taxable services under Survey and Map Making, as clarified by a Board circular. The appellant emphasized they did not provide technical consultancy, citing legal precedents supporting their position. The appellant relied on various decisions to support their argument, highlighting cases where services similar to theirs were not taxed. The respondent defended the impugned order, leading to a detailed analysis by the Tribunal. The Tribunal examined the legal definitions of Survey and Map Making Services, emphasizing the exclusion of activities authorized by the government. It noted that the appellant provided technical support to government projects, falling outside the taxable scope of Survey and Map Making Services. Referring to legal precedents, the Tribunal concluded that the impugned order was unsustainable in law. By following the reasoning of relevant decisions, the Tribunal set aside the order, allowing the appeal of the appellant. In the final analysis, the Tribunal's decision was based on a meticulous review of legal definitions, circulars, and precedents. By clarifying the scope of taxable services and interpreting relevant provisions, the Tribunal determined that the appellant's services were not subject to service tax. The decision highlighted the importance of accurate classification and interpretation of services under tax laws, ensuring fair treatment and compliance with legal requirements.
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