2018 (6) TMI 483

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....digenous LPG at Mangalore. From these facilities, LPG is sent through tank trucks to various LPG bottling plants of oil distribution companies. Whenever LPG tank trucks require any repair or mandatory testing of safety valves, the tanks are cleaned and completely degassed. During this activity, water is filled in tank mounted on the truck and discharged. Water is displaced by LPG vapors. For this activity, the appellant collects cost of water, LPG and the labour charges from the truck owners. The department contended that the activity undertaken by the appellants fairly falls under the heading "Technical Inspection and Certification Service". A show-cause notice dated 28.6.2006 was issued and confirmed by Order-in-Original No.34/2006 dated ....

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....chnical inspection and certification agency" means any agency or person engaged in providing service in relation to technical inspection and certification"; 65(105)(zzi) to any person, by a technical inspection and certification agency, in relation to technical inspection and certification; From the above, it is clear that the taxability will depend on the conditions that such services are provided by an agency; such agency should involve in inspection or examination and on completion of such inspection or examination; a certificate is issued stating to meet any of the criteria like quality, maintenance of standards, functionality or utility, safety or any other characteristics. The appellants contend that they are not an agency involved....

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....rom page 76 of the paper book, the appellants are issuing a degassing certificate to the effect that "This is to certify that LPG tank bearing registration No........of ..... on contract with ........ is degassed at MLIF, Mangalore on......... The bulk tank is being sent out after degassing." And they are also issuing a certificate to the effect that LPG tank truck is purged. From the same, it is abundantly clear that the appellants have not only inspected the tanks and performed the activity of purging and degassing but also have issued a certificate to that effect which makes the activity fall under "Technical Inspection and Certification Service"; therefore, the demand, interest and penalty are sustainable. 4. Heard both sides and perus....