2005 (11) TMI 2

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..... installation and commissioning of HVAC system and air-conditioning system. These systems were installed in Central Secretariat, and great eastern centre at Delhi and Command Hospital at Kolkata by two different contractors; who tendered for the contract and were awarded. The said two contractors appointed the appellant for a lump sum amount for designing, supervision of Installation, Testing and commissioning etc. Subsequent to the audit party's objection a show cause notice was issued for recovery of the service tax and imposition of penalty. The adjudicating authority confirmed the demand and also imposed a penalty. On an appeal, the appellate authority upheld the order of the adjudicating authority hence this appeal. 3. The learned Ad .....

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..... es as a Consulting Engineer and whether he can be termed as a sub-contractor. 6. The definition of the Consulting Engineer under the Finance Act, 1994 is as under : 31. "consulting engineer" means any professionally qualified engineer or an engineering firm who, either directly or indirectly, renders any advice, consultancy or technical assistance in any manner to a client in one or more disciplines of engineering : and further the services provided by such Consulting Engineer are covered under the statutory provisions are : to a "(g) client, by a consulting engineer in relation to advice, consultancy or technical assistance in any manner in one or more disciplines of engineering [but not in the discipline of computer h .....

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..... 8. Undoubtedly the said para clarifies that the services should be rendered directly to a client. In this case the appellant has provided services to the two main contractors, who are his client. The two main contractors entered into an agreement with for providing the HVAC and air-conditioning system. The said main contractors then engaged the current appellant for providing services to them and not to the original party.  9. In the light of above fact the appellant can never, by any stretch of imagination, be considered to have provided services to the original parties. Further, the said para 3.4 would have come to the rescue of the appellant, only if the two main contractors would have been "Consulting Engineers" themselves. The .....

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