9911796707
TMI Blog2005 (5) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... rder (Oral)]. - This appeal is against a demand of Service Tax for the period 1997-98 to 2001-2002. The appellants are manufacturers of floor cleaning machines. They used to offer warranty period of one year, beyond which they used to enter into Annual Maintenance Contracts (AMC) with their buyers for repair and maintenance of the machines sold. In July 1997, the appellants applied for and obtaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the appellants and imposed on them penalties of Rs. 500/-, Rs. 200/- per day, and Rs. 1000/- under Section 75A, 76 and 77 respectively. This decision of the adjudicating authority was upheld by the Commissioner (Appeals). Hence the present appeal. 2. Heard both sides. The learned Counsel for the appellants submits that, under the AMCs for the relevant period, they had independently underta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rolls Royce Industries Power (I) Ltd. v. CCE, Vishakhapatnam reported in 2004 (171) E.L.T. 189 (Tri. - Del.) wherein it was held that, in respect of advice, there should be two parties, one giving advice and the other accepting it. According to the learned Counsel, this proposition is applicable to consultancy and other intangible services. In the instant case, it is submitted that, the servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n "technical assistance in any manner" occurring in the definitions of "Consulting Engineer" and " Engineering Consultancy Service" has to be read ejusdem generis with the preceding words "advice" and "consultancy". 3. After giving careful consideration to the submissions, I am inclined to accept the learned Counsel's plea that what is comprised in "consulting engineer" and "engineering cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintaining the machines, which can hardly be equated with intangible services such as advice, consultancy etc. It would follow that the repair and maintenance of machines undertaken by the appellants under AMCs with their buyers beyond the warranty period were not covered by "engineering consultancy service". This activity became taxable service only with effect from 1-7-2003. 4. For the reason ..... X X X X Extracts X X X X X X X X Extracts X X X X
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