2016 (12) TMI 929

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....y of Rs. 5000/- under section 77 of the Finance Act 1994 has also been imposed. 2. The appellant has been represented by Shri A.K. Batra & Shri Varun Gaba, Advocates and the Revenue has been represented by Shri Ranjan Khanna, DR. 3. The facts of the case and submissions of both the sides have been considered carefully. 4. The appellant is engaged in providing business support services to manufacturers of export garments. Such manufacturers are outsourcing the activities of verification and examination of various stages of manufacturing of readymade garments meant for exports. The manufacturer of garments appointed the appellant namely AT & Co. to perform the activities as under: (i) The presence of an external organization ensures that ....

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....nbsp;(ii) Services rendered by them are not taxable under the category of inspection and certification but are taxable under business support services. (iii) Reliance placed on department's circular number 59/8/2003 dated 20.06.2003. 6. Services of 'technical inspection and certification' has been defined under section 65(108) as follows: "technical inspection and certification" means inspection or examination of goods or 4[process or material or information technology software] any immovable property to certify that such goods or 5 [process or material or information technology software] or immovable property qualifies or maintains the specified standards, including functionality or utility or quality or safety or any other characteris....

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....outcomes of services rendered by the appellant do not lead to any certification and cannot be covered by the technical inspection and certification services covered under section 65(108) of the Finance Act 1994. The department has already been charging service tax for the services rendered by the appellant under the category of business support services which came into the taxable net on 01.05.2006. Therefore, the attempt of the Revenue to charge service tax on the said services under the category of technical inspection and certification services w.e.f. 01.07.2003, when the technical inspection and certification services was brought into the taxable net under section 65(105)zzi cannot be sustained in the eyes of the law. In this regard we ....