2014 (12) TMI 500

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..... The appellants had recovered certain amounts from their clients during the period in dispute towards services rendered by them as consulting engineers. The Revenue issued a show cause notice demanding service tax in respect of the consideration received by the appellants as consulting engineers. The adjudicating authority confirmed the demand and imposed penalties. The appeal filed by the appellant was dismissed by the Commissioner (Appeals). 4. The contention of the appellants is that the appellants provided consulting engineers services to M/s. NEC Engineers Pvt. Ltd. as sub-contractor and not to the customers of M/s. NEC Engineers Pvt. Ltd. The appellants relied upon Trade Notice No. 53-C.E. Service Tax/97, dated 4-7-1997 of th....

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....stainable. 6. The Revenue relied upon the findings of the lower authority and submitted that as per the agreement, the appellant provided consulting engineer service to M/s. NEC Engineers Pvt. Ltd. and as per the provisions of the Finance Act, 'consulting engineer' means any professionally qualified engineer or an engineering 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. In the present case, as the appellant provided consulting engineer service, therefore the appellant is liable to pay service tax. 7. We find that in the present case, the demand is for the period November 1998 to March 2003. The issue is wh....

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....t in CEA 12/2007 on 1st April, 2010 stating that prior to the Amendment Act, 2006, the Companies were not included under the definition of consulting engineer. When we have taken such a view, considering the relevant assessment year in the present case we have to hold that the service rendered by the assessee Company during relevant period cannot be brought under the category of consulting engineer. If the service rendered by the assessee cannot be considered as a consulting engineer, the question of calling upon the assessee to pay the service tax under the Finance Act, brought the assessee under the word consulting engineer does not arise at all. Therefore, the said point has to be answered against the revenue and in favour of the assesse....