2014 (5) TMI 651

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....g their final products. The air separation plant is owned by the appellant and is leased to their customers. By a separate agreement, the appellant undertakes the operation and maintenance of the air separation plant at the customer's plant. Consideration for leasing is mutually agreed upon. Similarly, consideration for operation and maintenance of the air separation plant is also mutually agreed upon by and between the appellant and their customers. We are concerned in the present case with the agreement for operation and maintenance of the plant. The dispute in the present case relates to the quantum of service tax liability of the appellant in relation to the operation and maintenance of the plant relating to two of its customers. ....

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....read with Rule 3 of the Service Tax (Determination of Value) Rules, 2006. 4. Heard the learned Advocate for the appellant as also the learned AR. 5. At the outset, we note that the appellant is paying service tax under the category of 'consulting engineer service' Consulting engineer service is defined under Section 65(31) of the Finance Act, as under:-     "Consulting engineer' means any professionally qualified engineer or any body corporate or any other firm who, either directly or indirectly, renders any advice, consultancy or technical assistance in any manner to a client in one or more disciplines of engineering". Further, Section105 (g) reads as under:-     "'Taxable servic....

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....ice. In view of this position, in our view, electricity is not an input for the service provided by the appellant. The question of adding the value of electricity for computing the taxable value of service of operation of plant will not arise. 8. We also note that the value is to be determined as per Section 67 of the Finance Act. Section 67 of the Finance Act is reproduced below:-     "(1) Subject to the provisions of this Chapter, where service tax is chargeable on any taxable service with reference to its value, then such value shall -         (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such....

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.... pay order, travellers cheque, money order, postal remittance and other similar instruments but does not include currency that is held for its numismatic value;         (c) "gross amount charged" includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and book adjustment, and any amount credited or debited, as the case may be, to any account, whether called "Suspense account" or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise." 9. Further, Rule 3 Service Tax (Determination of Value) Rules, 2006 reads as under:-  &n....