Erection and installation work fell outside consulting engineer service before the specific taxable entry came into force.

Erection, installation and commissioning of textile machinery was treated as the operative service, not consulting engineer service, because the latter covers consultancy rather than physical execution of installation work. The analysis also notes that Board circulars clarified that erection, installation and commissioning charges were outside consulting engineer service, and that the later circular superseded the earlier clarification. As the specific taxable entry for erection, installation and commissioning came into force only from 01.07.2003, the text concludes that no levy could be sustained for the earlier period and the demand was unsustainable.

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Issues: Whether the services rendered by the assessee during 01.04.1998 to 30.06.2003 were classifiable as consulting engineer service or as erection, installation and commissioning service, and whether such activity could be taxed before the latter service was brought into the statute book.

Analysis: The service shown in the show cause notice and the investigation records was erection, installation and commissioning of textile machinery. That activity did not fall within consulting engineer service, which covers consultancy and not physical execution of installation work. The Board's circular clarified that charges for erection, installation and commissioning are not covered under consulting engineer services and that the later clarification modified the earlier one. Since the specific taxable entry for erection, installation and commissioning came into force only from 01.07.2003, no levy could be sustained for the earlier period.

Conclusion: The demand was unsustainable and the classification adopted by the lower authority was /incorrect in law; the appeal was allowed in favour of the assessee.

Final Conclusion: Services consisting of erection, installation and commissioning could not be assessed as consulting engineer service for the period prior to introduction of the specific taxable entry, and the impugned adjudication was set aside.

Ratio Decidendi: A service cannot be taxed under a residual or inapplicable taxable entry when the exact service was not within the statute during the material period, especially where the departmental circular itself clarifies the correct scope of the entry.

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