Architect service tax liability turns on commercial concern status; heritage conservation work without profit motive was outside the taxable category.

A non-profit heritage trust was held not to fall within the taxable category of an architect service provider because its name was not shown to be entered in the architects register and the services were rendered for heritage conservation without profit motive, so it did not answer the description of a commercial concern. The departmental acceptance of the same position for another period reinforced that view. Accordingly, service tax, interest and penalties were not sustainable and the demand was set aside.

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Issues: Whether the appellant, a non-profit heritage trust, fell within the definition of "architect" as a commercial concern rendering services in the field of architecture and was therefore liable to service tax, interest and penalties.

Analysis: The definition of "architect" covered a person whose name was entered in the register of architects under section 23 of the Architects Act, 1972, and also a commercial concern engaged in rendering architectural services. The appellant's name was not shown to be entered in the register of architects. The agreement and surrounding circumstances indicated that the services were rendered for heritage conservation without profit motive, so the appellant did not answer the description of a commercial concern. The departmental acceptance of the same view for another period further supported that conclusion.

Conclusion: The appellant was not taxable as an architect service provider. The demand of service tax, interest and penalties could not be sustained and was set aside in favour of the assessee.

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