2010 (6) TMI 120 - AT - Service Tax

Consultaing Engineering Services- the commercial production of the Appellant started on 1.3.96. There is no evidence on record to suggest that Consulting Engineering Service was provided after 1.3.1996 and also continued after 7.7.97. Held that- Finding no evidence on record to show that Consulting Engineering Service was provided during the impugned period and also relying on the decision of the Tribunal NYCO S.A. vs Commissioner of Service Tax, Delhi 2009 -TMI - 32712 - CESTAT, NEW DELHI cited by the ld.counsel, the appeal of the appellant is allowed.

Summary

Issues:
1. Whether the services provided can be classified as 'Consulting Engineering Services' for the purpose of liability under the Finance Act, 1994.

Analysis:
The appellant contended that the technology was provided before the commencement of commercial production, asserting that it could not be considered as 'Consulting Engineering Services.' The appellant's counsel referred to a previous Tribunal decision to support this argument. On the other hand, the Departmental Representative (D.R.) supported the order of the lower authority.

Upon hearing both sides and examining the records, the Tribunal noted that commercial production began on 1.3.1996, and there was no evidence of Consulting Engineering Services being provided after that date and continuing after 7.7.1997. The Tribunal emphasized that the incidence of levy is based on the provision of services, which had occurred before the commencement of commercial production. The consideration received after 7.7.1997 was the basis for the adjudicating authority's decision on the levy of service tax. Since there was no evidence of Consulting Engineering Services being provided during the relevant period, and considering the precedent cited by the appellant's counsel, the Tribunal allowed the appeal. Any consequential relief was to be granted in accordance with the law.

The decision was pronounced in court by the Technical Member and the Judicial Member, with the appeal of the appellant being allowed based on the lack of evidence showing the provision of Consulting Engineering Services during the relevant period.