2014 (11) TMI 710 - AT - Service Tax

Waiver of pre deposit - Survey and map making services - consulting engineer s service - Held that - The activity undertaken by the appellant, as can be seen from the work orders, is soil investigation, traffic survey and pavement design. These activities prima facie would not come under the category of survey and map making services Services in relation to construction of Road - classification under the consulting engineer s service - Held that - If any one of the three is rendered, in any manner, liability to service tax is attracted. Even if it is assumed that the appellant has not rendered any advice or consultancy, the question is whether the services rendered could be categorized as technical assistance . Technical assistance, by its very nature would imply rendering of executor services, in relation to advice or consultancy. From the traffic survey conducted by the appellant, advice can be rendered about the nature of road to be constructed. From the soil investigation undertaken, the type and design of the road to be constructed can be determined. Similarly, from the pavement design, the design of the road itself can be made. Thus, the activity undertaken by the appellant has a direct bearing on the construction of roads. prima facie appellant has not made out case for complete waiver of the pre-deposit of the dues adjudged against them - Partial stay granted.

Summary

Issues:
1. Classification of services under 'consulting engineer service' or 'survey, map making services'
2. Time-barred demand issue

Analysis:
1. Classification of services under 'consulting engineer service' or 'survey, map making services':
The appellant, engaged in survey and related activities for road construction, contests the classification of their services as 'consulting engineer service.' The appellant argues that their activities do not fall under the purview of 'consulting engineer service' as they do not provide advice, consultancy, or technical assistance in any branch of engineering. They suggest that their services might align more with 'survey, map making services.' The Revenue, however, maintains that the appellant's activities, including soil investigation and pavement design, do not fit the definition of 'survey and map making services.' The Tribunal notes that the appellant's services directly impact road construction, falling within civil engineering/road engineering, and involve technical assistance related to advice or consultancy. Citing precedent cases, the Tribunal indicates that technical assistance linked to advice or consultancy can be considered 'consulting engineering service.' Consequently, the Tribunal rules that the appellant has not sufficiently demonstrated grounds for a complete waiver of the dues.

2. Time-barred demand issue:
The appellant also raises the issue of the demand being time-barred, given the delayed issuance of the show cause notice in 2013 for the period 2007-08 to 2011-12. The Tribunal acknowledges the interpretation complexity of statutory provisions involved in the case. While the demand for the normal period amounts to approximately Rs. 3 lakhs, the Tribunal finds merit in the appellant's argument regarding the time limitation aspect. Consequently, the Tribunal directs the appellant to make a pre-deposit of Rs. 3 lakhs within eight weeks, with compliance required by a specified date. Upon this pre-deposit, the balance of dues is waived, and recovery is stayed during the appeal proceedings.

This detailed analysis outlines the key issues addressed in the judgment, including the classification of services and the time-barred demand concern, providing a comprehensive understanding of the Tribunal's decision and reasoning.