9911796707
TMI Blog2013 (1) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... sputed that " Scientific or Technical Consultancy " was brought under Service Tax net with effect from 16.7.2001 only. The assessee was not only providing "Consulting Engineering Services" but also "Scientific or Technical Consultancy" i.e. Scientific Research. The activities of "Scientific Research" and "Consulting Engineering Services" are different. The assessee in their letter dated 25.9.2002 had given a calculation indicating that only Rs. 15,58,750/- is payable towards service tax liability on "Consulting Engineering Services" (other than for research) for the period 1997-98 to 2001-02. They had included service tax liability on "Scientific and Technical Consultancy Services" i.e. research also for the period subsequent to 16.7.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suspicion that the respondent was evading payment of Service Tax under the provisions of the Finance Act, 1994 on "Consulting Engineering Services" provided by it to clients, the Head Quarters Preventive Unit of the Central Excise Commissionerate, Visakhapatnam conducted investigations. The respondent submitted information of services rendered by it such as names of clients, description of services rendered, amount collected towards services rendered etc for the period 7.7.1997 to 31.3.2002. The respondent also contended that services rendered by them which are in the nature of non-research projects are alone classifiable as "Consulting Engineering Services" for the purpose of levy of Service Tax and that services shown as research project ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 75 of the Finance Act, 1994 on the amount of Service Tax payable as at (ii) above should not be demanded from them. (v) the penalties under Sections 75A, 76,77 and 78 of the Finance Act, 1994 should not be imposed on them." 5. The respondent gave a reply dated 25.9.2002 refuting the contentions of the Commissioner of Central Excise and Customs, Visakhapatnam and contended that it is not liable to pay Service Tax of Rs. 47,43,804/- on the amount of Rs. 9,48,76,081/- or interest or penalties as proposed in the show cause notice. 6. By Order in Original No.16/2003-04 dated 30.12.2003, the Additional Commissioner of Central Excise and Customs, Visakhapatnam held that all the services rendered by the assessee attract Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivity" became taxable only with effect from 16.7.2001, that till such time it was not covered under the head "Consulting Engineering Services"; that the respondent by letter dated 25.9.2002 had submitted a detailed calculation indicating Service Tax liability for "Consulting Engineering Services" (other than research i.e "scientific and technical consultancy") for the period 1997-98 to 2001-02 was only Rs. 15,58,750/-, that the respondent had also included Service Tax liability with effect from 16.7.2001 for "scientific and technical consultancy" and therefore he restricted the demand of Service Tax to only Rs. 15,58,750/-for the relevant period with interest. He set aside the penalties imposed on the respondent on the ground that the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Finance Act, 1994 through the Finance Act, 1997. It is also not disputed that " Scientific or Technical Consultancy " was brought under Service Tax net with effect from 16.7.2001 only. 13. The assessee/respondent was not only providing "Consulting Engineering Services" but also "Scientific or Technical Consultancy" i.e. Scientific Research. The activities of "Scientific Research" and "Consulting Engineering Services" are different. 14. The respondent in their letter dated 25.9.2002 had given a calculation indicating that only Rs. 15,58,750/- is payable towards service tax liability on "Consulting Engineering Services" (other than for research) for the period 1997-98 to 2001-02. They had included service tax liability on "Scie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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