Repair and maintenance services are not Consulting Engineering Service merely because technical know-how is shared for upkeep.

Services obtained from a foreign parent company for furnace repair and maintenance were not taxable as Consulting Engineering Service, because the activity was directed to repair and upkeep rather than consultancy or engineering advice. The associated transfer of technical know-how for maintenance also did not bring the arrangement within that tax category, so the service tax demand was held unsustainable and the assessee obtained consequential relief.

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Issues: Whether services availed from the foreign-based parent company for repairing the furnace were taxable as Consulting Engineering Service.

Analysis: The services were admitted to have been obtained for repair and maintenance of the furnace. Such services could not be treated as Consulting Engineering Service. The transfer of technical know-how for maintenance also did not fall within the ambit of Consulting Engineering Service.

Conclusion: The demand of service tax under Consulting Engineering Service was not sustainable and the appeal was allowed with consequential relief.

Ratio Decidendi: Services obtained for repair and maintenance, including associated technical know-how for maintenance, are not taxable as Consulting Engineering Service merely on that basis.

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