TaxTMI 
TaxTMI 
2014 (7) TMI 1019
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....09.2011 covering the period from April 2010 to March 2011. Totally there are 3 demands against the appellant confirmed with interest. An amount of Rs. 56,41,17,360/- is demanded under Management, Maintenance or Repair Service on the ground that the activity of supply of spares, refurbishing and upgradation of air craft and other defence equipments for defence purposes would attract levy of service tax. The second demand in under the category of Consulting Engineers Service for Rs. 88,94,81,409/- and Rs. 27,09,38,010/- under Consulting Engineers Service under the second show-cause notice. Penalties under Section 76 and Section 78 have been imposed in the first show-cause notice and penalty under Section 76 and 77 have been imposed in respect of the second show-cause notice. 3. Even though a lot of arguments were presented on merits and several issues were raised, after hearing both the sides for quite some time, we found that the matter has to be remanded at this stage itself in view of the observations that would be made hereunder. Therefore the requirement of pre-deposit is waived and appeals are taken up for final decision. 4. As regards Management, Maintenance or Repair Se....
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....restoration, or servicing of any goods, repair services, restoration, Roads, airports, railways, buildings, parks, electrical installation repair, maintenance and management, servicing of any goods, software maintenance or repair. 78. In view of the above services like reconditioning, refurbishing and upgradation work undertaken by the unit falls under the category of Management, Maintenance or Repair Services under Section 65(64) of the Finance Act, 1994. 79. I find that even though the unit had taken registration for Management, Maintenance or Repair Services, it had not paid the service tax on reconditioning, refurbishing and upgradation work undertaken. The total amount collected as reconditioning, refurbishing and upgradation for a period from October 2005 to March 2010 is Rs. 491,71,90,034/- and the service tax liability works out to Rs. 56,41,17,360/-. 80. In view of my foregoing findings on the facts and circumstances of the case, the demand of service tax of Rs. 56,41,17,360/- under Management, Maintenance or Repair services merits confirmation. ....
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....nd they are rendered in the capacity of a consulting engineer. The scope of the services of a consultant may include anyone or more of the following categories. 83. The another type of agreement entered into between the parties was design, development of software, development of detailed engineering, procurement, fabrication of proto type of air craft, development of new aircrafts, training, etc. on the development of LCA/HJT-36 for Air force and navy. On perusal of agreements on the new products, the development consisted of design, development, development engineering, software development, fabrication, development of prototype, test trial, training, etc. 84. The activities covered under this service are advice, basic design engineering, body corporate providing engineering consultancy, construction supervision, consultancy, consultancy in engineering, consulting engineer, detail design engineering, establishing systems and procedures for an existing plan, feasibility study, firm providing engineering consultancy, incorporated companies, manpower planning and training, post operation and management, pre-design services, procurement, professionally qualified engineer, projec....
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....f detailed engineering, procurement, fabrication of proto type of air craft, development of new aircrafts, training etc. Prima facie we do not find any basis for the conclusion reached by the Commissioner that this agreement is for Management, Maintenance or Repairs. Similarly in the case of agreement covered by para 4.A.2 relating to LCA, the agreement related to design, development, upgradation and testing of LCA. The only one item which covers the service on a prima facie basis by merely looking at words is 'maintenance and utilization of the capital assets established under FSED Phase-1.' There is no explanation forthcoming on this issue also either from the agreement or from the Commissioner. Further in paragraph 76, the Commissioner has summarized different types of work undertaken by the appellants which included design and development of LCA/HJT-36 aircrafts, fabrication of prototypes, flight trials, weapon integration, initial and final operation clearance, setting up of facilities etc.. Commissioner has not explained how these activities are covered under the activities explained by him in para 77 before reaching the conclusion in para 78. Under these circumstances, we f....