Statutory fees collected under regulatory mandates are not taxable as Technical Inspection and Certification Service, appeal allowed.

Fees charged under Standard & Labelling and Processing Fee were held not to attract service tax as Technical Inspection and Certification Service because they were levied pursuant to statutory regulations, pre notified and fixed by the competent authority, and arose from performance of statutory obligations. The article applies the earlier reasoned ratio to later periods raising the same legal question and concludes that those fees are exempt from the contested service classification; consequentially the impugned assessment was set aside and the appeal allowed insofar as it challenged taxability of the impugned fees.

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Issues: Whether the appellant (M/s. Bureau of Energy Efficiency) is liable to pay service tax on fees charged under "Standard & Labelling" and "Processing Fee" as falling within "Technical Inspection and Certification Service" under Section 65(108) read with Section 65(105)(zzi) of the Finance Act, 1994.

Analysis: The Tribunal applied prior reasoned decisions in which the appellant's earlier periods were considered. Those decisions found that the appellant collected fees in pursuance of statutory regulations, the fees were pre-notified and fixed by the competent authority, and the appellant performed obligations mandated by statute and regulations. On that basis, the activity was treated as performance of statutory obligations and not as a taxable service under the contested service category. The present show cause notices for the subsequent periods raise the same legal question and were addressed by applying the earlier ratio.

Conclusion: The fees charged under "Standard & Labelling" and "Processing Fee" do not attract service tax as "Technical Inspection and Certification Service" because they were collected pursuant to statutory obligations and pre-notified statutory fees; appeal allowed.

Final Conclusion: The Tribunal followed its earlier decisions and held that service tax is not leviable on the impugned fees for the periods in question, resulting in setting aside of the impugned order and allowing the appeal.

Ratio Decidendi: Fees collected by an authority pursuant to statutory regulations and pre-notified/fixed by the competent authority for performance of statutory obligations are not taxable as a "technical inspection and certification" service under the Finance Act, 1994.

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