Consulting engineer service does not cover mere instrument testing and test reports where no engineering advice is rendered.

A society engaged only in testing instruments and issuing test reports did not fall within consulting engineer service because that taxable category requires a professionally qualified engineer or engineering firm rendering engineering advice, consultancy or technical assistance. The activity was confined to testing and reporting, not advisory engineering work, so service tax liability was not attracted. A departmental circular on public funded research institutions receiving Government grants was also noted as supporting non-taxability in this context, and the cited precedents were treated as factually distinguishable.

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Issues: Whether a society engaged in testing instruments and issuing test reports falls within the taxable category of consulting engineer service under the service tax law.

Analysis: The definition of consulting engineer service contemplated a professionally qualified engineer or an engineering firm rendering advice, consultancy or technical assistance in one or more disciplines of engineering. The appellant was a society registered under the Societies Act and was not an engineering firm. Its activity was confined to testing instruments and furnishing test results, without rendering engineering advice, consultancy or technical assistance to clients. The Tribunal also noted that the departmental circular clarified that public funded research institutions receiving Government grants for research or project work were not covered by service tax in this context. The cited precedents on consulting engineer service were found distinguishable on facts.

Conclusion: The appellant was not liable to service tax under consulting engineer service, and the demand could not be sustained.

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