2004 (10) TMI 8

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....ee and the other by the Revenue, both directed against the same order of the Commissioner (Appeals). In the impugned order, ld. Commissioner (Appeals) upheld a demand of service tax of Rs. 3,27,253/- confirmed against the assessee by the original authority for the period 1-7-1997 to 31-3-2000, but set aside the penalty imposed on the party by the lower authority. The present appeal of the assessee....

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....is, however, argued that no tax was leviable during the period of dispute on the service connected with soil test. According to ld. Counsel, this service became taxable for the first time under Clause 106 of Section 65 of the Finance Act, 1994, which Clause was inserted by the Finance Act, 2003. Counsel has argued that 'construction service was not a taxable service before insertion of Clause 30(a....

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...., 1994. Any amount collected by the Consulting Engineer towards cost of construction of any building cannot be brought within the purview of "advice, consultancy or technical assistance". Admittedly, the assessee in this case is a Civil Engineer functioning under the name and style of "Atlanta". Any service rendered by him by way of "advice, consultancy or technical assistance" to his clients will....

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....ce. Those payments, as already noted, were not under protest either. The advice given by the assessee to their customers as to suitability of the latter's land for building construction was, indisputably, based on the soil test results and any amount collected towards soil test should be treated as integral part of the consideration collected for technical advice. The Counsel's plea against inclus....