2014 (3) TMI 267

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..... n the windmills sold by the latter to their clients for which they received consideration from the latter. The department was of the view that the said services rendered by the appellant to M/s. Suzlon Energy Ltd. comes under the category of 'Consulting Engineer's Service' and accordingly a show cause notice dated 23-11-2004 was issued to the appellant to show cause why Service Tax demand of Rs. 87,56,501/- should not be demanded from the appellant for the services rendered during April, 1999 to March, 2003 under the category of 'Consulting Engineer's Service' along with interest thereon and also proposing to impose penalties. The said notice was adjudicated upon and the impugned order was passed wherein the demands were confirmed along wit .....

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..... any advice, the said service did not come within the purview of 'Consulting Engineer's Service'. The learned counsel also refers to the decision of this Tribunal in the case of Basti Sugar Mills Co. Ltd. v. Commissioner of Central Excise, Allahabad - 2007 (7) S.T.R. 431 (Tri.) wherein an issue arose as to whether actually running a sugar mill would amount to 'Management Consultancy' and it was held that managing sugar factory does not come within the scope of 'Management Consultancy Service'. The Tribunal held that actual performance of a management function is distinct and different from advisory services rendered by a management consultant. The said decision was challenged by Revenue before the Hon'ble Apex Court and the Hon'ble Apex Cour .....

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..... of 5 years free of cost and, thereafter on payment of charges. To fulfil this contractual obligation as per the agreement, M/s. Suzlon Energy Ltd. entered into an agreement with the appellant to actually undertake the operation, maintenance and security of the windmill sold by M/s. Suzlon Energy Ltd. to their customers and the appellant actually undertook operation and maintenance and security of the windmill system. What the appellant has performed is operation and maintenance of windmills and not rendering any advice, consultancy or technical assistance in any field of engineering, which is the criterion for classifying the service under the category of 'Consulting Engineer's Service'. Such executory services does not come under the purvi .....

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