2006 (5) TMI 26

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....t them to levy service tax under the heading 'consulting engineer'. The appellants contend that no activity of consulting engineer is carried out by them in terms of its definition appearing in Section 65(13) of Finance Act. No professional engineering advice directly or indirectly is rendered nor consultancy or technical assistance in any manner is rendered to their clients in one or more disciplines of engineering. They are merely testing the instruments to find out its working in terms of several specifications and such activity is not in the nature of consulting engineer. 2. The learned Counsel has raised two contentions. In the first place, he has submitted that the Society is not covered within the ambit of the Finance Act.....

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....f Haryana v. Goodyear Ltd. reported in 1991 (76) STC 72 (S.C.) and State of Orissa v. Sudhansu Sekhar Misra reported in AIR 1968 SC 647 on the plea that a precedent is binding for what it decides and not what. logically or consequentially flowing from it. It is his submissions that the ratio of the judgment rendered in the context of a company functioning as 'consulting engineer' cannot be applied to a society. It is working on non-profit basis under the Ministry of Power, Government of India. Therefore, he pointed out that Revenue reliance on Karnataka High Court judgment rendered in the case of Tata Consultancy Services v. UOI reported in 2006 (2) S.T.R. 386 (Kar.) = 2001 (130) E.L.T. 726 (Kar.) is distinguishable and also for fur....