2011 (5) TMI 546

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....9,23,556/- (Rupees One crore eighty nine lakhs twenty three thousand five hundred and fifty six only) has been demanded for the period from October 2006 to September 2008 and penalties have been imposed under Section 75, 76, 77 and 78 of the Finance Act, 1994 from the appellant which is a subsidiary of UL. The Service Tax demand has been confirmed on the ground that the different services such as Engineering Review Services, Transaction Centre Services, Follow up Services provided by the appellant to UL are to be classified under "Technical Inspection and Certification service" and it cannot be treated as export of services. 2. Detailed submissions were made by both the sides. 3. We have considered the submissions made and also gone throu....

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....undertaken by the appellant can be categorized under Consulting Engineer Services, Business Auxiliary Services and Business Support Services and not under Technical Inspection and Certification Service even though it can be said that UL is undertaking this service. Even if the department's stand that the service provided by the appellant is covered by Technical Inspection and Certification Service is accepted, this service is categorized under services notified under category II of Rule 3 of Service Tax Export Rules and in respect of these services if a service is partly performed in India and partly performed abroad, it is treated as export of service, He relies on the decision of the Tribunal in the case of CST Vs. B A Research India Ltd.....

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....client based outside India , but is performed in India ." 6. It can be seen that show cause notice itself while explaining the manufacturing process accepts the fact that the inspection of manufacturing process facilities available and product inspection are undertaken by the appellant as per the direction of UL. In this case, initial order for undertaking Technical Inspection and issue of certificate is placed on UL, initial verification and study of the product is done by the US company and the data is sent to the appellant who verify whether it conforms to the standards and thereafter undertake the periodical inspection of process and send the report to UL, on the basis of which UL takes a decision as to whether the certification should....