2018 (7) TMI 617

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....eements with the Bihar State Electricity Board for providing consultancy services in connection with implementation of rural electrification in Bihar. Even though the actual work did not start till October, 2004, they received the advance in lump sum amounting to Rs. 117.00 crores in respect of the above project. The departmental authorities after issuance of show cause notice dated 19.12.2005, passed the impugned order wherein demand for service tax amounting to Rs. 1,26,47,105/- was confirmed along with interest as well as penalty of equal amount under Finance Act, 1994. Challenging the above impugned order the present appeal has been filed. 2. With this background we heard both sides and perused the appeal record. 3. Ld. Advocate f....

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....ing both sides and perusal of record we note that the appellant is a Public Ltd. Company of Government of India Undertaking who have rendered consultancy services to the Bihar State Electricity Board. The crux of the dispute is whether the service tax liability under the category of "Consulting Engineer" will be applicable to the appellant for the period prior to the amendment in the said definition w.e.f. 01.05.2006. For proper appreciation we reproduced below the definition as it was prior to its amendment: "Section 65. Definitions.- Xxxxx    xxxxxx xxxxxxx                 xxxxxxx (31) "consulting engineer" means any professionally qualified engi....

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....be seen therefore that even a definition clause in an enactment must derive its meaning from the context or subject. That is to say, the definition clause of consulting engineer under Section 65(18) of the Act must derive its meaning from the context or subject, namely, the provisions contained under Section 66(3) and Section 65(72)(g) of the Act. If the said exercise is done, it will make it very clear that the clear intent of the legislature is to bring the consulting engineer within the ambit of the service tax. Therefore, the proper way to construe the definition clause of consulting engineer is to read the definition as not intended to exclude the consulting engineer rendering service either individually or collectively. In the context....

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....g event apparent from the scheme and gather the meaning therefrom. In Nagpur Electric Light and Power Co. Ltd. v. K. Shreepathirao [1958-59] 14 FJR 199 ; AIR 1958 SC 658, the Apex Court declared that a definition clause in an enactment must derive its meaning from the context or subject. We find that the word "firm" has been used in Section 81 where it was explained in relation to imposition of penalty. It has been used in Rule 6 to make a distinction with regard to the manner of payment. This use of the word "firm" in the statute and the rules indicates how it is to be interpreted. It is the responsibility of the court to interpret the word in a manner consonance with the scheme and the object and its purpose as well as the different expre....