Third Party inspections and certifications — Liability to Service Tax — Clarifications

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....her "third party inspections and certifications" carried out by certifying agencies in respect of marine as well as non-marine equipments, can be considered as a service provided by a "consulting engineer" or not. 3. This matter was also raised by two service providers before the Mumbai High Court, in Writ Petition No. 1436/2000. The petition was disposed of by the Hon'ble Court on 11-9-2001 with directions to the Board to issue a Section 37B Order in the matter for ensuring uniformity. 4. The two service providers were heard in the matter on 4th January, 2002. Views of the field formations were also procured. Some of the types of inspection and certification work carried out by the said two service providers relate to :- 1. MARINE....

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....of 'Management Consultants', the Board had clarified, in Para 11 of the Sec. 37B Order No. 1/1/2001-ST, dt. 27-6-2001, that "..........banks who are required to play only a statutory role under any Act or regulation, such as Takeover Regulations of SEBI, and do not provide any advice or consultancy but merely verify and submit a report to the concerned authorities, in connection with merger and acquisition transaction, are not treated as Management Consultants....................". The definition of "Management Consultant" also uses the words 'consultancy, advice or technical assistance'. 9. Certificates given under authority of any statute/international protocol /code /convention, cannot be considered to be a consultancy job. It is then....