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TMI Blog2007 (9) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... ivisions viz. Marketing Division and Project Engineering Division. The Project Engineering Division undertakes works such as design, engineering, supply, erection and commissioning of sub-station/power station, switch yards etc. The services of 'Consulting Engineers' were brought under the Service Tax Net w.e.f. 7-7-1997. 'Consulting Engineer' is defined to be a professionally qualified engineer or an engineering firm who either directly or indirectly renders any advice, consultancy or technical service in any manner to a client in one or more disciplines of engineering. The Central Board of Excise Customs, in their Circular dated 2-7-1997, has explained the scope of services of a Consulting Engineer, which includes any one or more of the following (i) Feasibility study (ii) Pre-design services/project reports (iii) Basic design engineering (iv) Detailed design engineering (v) Procurement (vi) Construction, supervision and project management (vii) Supervision of commissioning and initial operation (viii) Manpower planning and training (ix) Post operation and management (x) Trouble shooting and technical services including establishm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1994. 2.1 As regards the Order-in-Appeal dated 23-5-2006, this order also has been appealed against and the period involved in this order is from 1-3-2003 to 30-6-2003. But, the issue involved is one and same. In the Order-in-Appeal, the Commissioner (Appeals) has upheld a demand of Rs. 2,47,671/- being the Service Tax payable by the appellant for the above mentioned period. He has set aside the penalty imposed on the appellant. The appellants are highly aggrieved over the impugned orders and, therefore, they have come before us for relief. 3. Shri Gangadharan, the learned Assistant Officer (Taxes), of the appellant Company, appeared for the appellants and Shri S.M. Tata, the learned DR for the Revenue. 4. We heard both. sides. Shri Gangadharan, the learned Assistant Officer (Taxes) of the appellant unit, argued that the appellant company is a Govt. of Kerala Unit and they are only engaged mainly in the manufacture of Transformers and later, on the basis of the contract with their clients, they supply and undertake the erection and commissioning of the same. According to him, the appellant unit cannot be called as Consulting Engineers. He emphasised that they only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er - 2002 (8) Supreme Court Cases 361. 6. We have gone through the records of the case very carefully. We find that the Commissioner, while passing the Order-in-Revision, has carefully examined all the invoices raised by the appellants in respect of the Services rendered by them. In Annexure to the impugned Order-in-Revision 3/2005-06, there are 101 invoices. The description of work done, the invoice number and the amounts charged for these services are indicated. A perusal of these annexure reveals that the work done relates to designing and engineering, supervision of erection installation, supervising charges for service technicians, design and drawing, training for technical personnel, design excavation and installation, charges for supervision, commissioning, supervising charges for engineer, etc. The Commissioner, in his Order-in-Revision, has examined the services rendered by the appellant in the light of the Board's order and in para 9 of the Order-in-Revision, he has enumerated a few examples of the services rendered by the appellant : 1. Charges for design, engineering services for 132/6.6 KV Switch Yard. 2. Charges for erection and commissioning of equip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support, etc. In the light of these things, we cannot accept the appellants' contention that they have not rendered services in the capacity of a Consulting Engineer. 6.2 The appellant unit is engaged in the manufacture of design of transformers and also the execution of various projects. In the course of the execution, they have to carry out design, drawing, engineering, training, supervision of erection, commissioning, trouble shooting, etc. All these activities come within the scope of activity of Consulting Engineers as clarified by the Board. It has also been held by the Tribunal in the case of Transweigh (India) Ltd. v. CCE, Mumbai - 2006 (3) S.T.R. 281(Tri.-Mumbai) = 2004 (170) E.L.T. 527 (Tri.) that the appellants' contention that to attract the levy of Service Tax under the category of Consulting Engineer, the service provider should be engaged solely in the process of rendering consulting services was not accepted. The appellant may to be a manufacturing company only but so long as they render certain services, which fall within the ambit of Consulting Engineers, they are liable for Service Tax. We find that the appellants employ highly qualified professi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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