2008 (11) TMI 110

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....ppellant. Shri Vijay Sejpal, Advocate, for the Respondent. [Order per: B.S.V. Murthy, Member (T)]. - The respondents are manufacturers of electrical capacitors and switchgears falling under Chapter 85 of the schedule to the Central Excise Tariff Act. On the basis of the income shown by them under the head of "Consultation fees", a show cause notice was issued demanding service tax under the ....

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....e engaged in manufacture of sophisticated electrical items like electrical capacitors, switchgears which are technically sophisticated and require high engineering skills and therefore they come under the category of engineering firm. He also cited the decision of the Tribunal in the case of M/s. Nokia (I) Pvt. Ltd. [2006 (1) S.T.R. 233 (Tri.-Del.)] in support of his contention that consulting eng....

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....of the company and is clearly not covered by the consulting engineering service, He relies on the decision in the case of M/s. Shakumbari Sugar & Allied Ind. Ltd. [2006 (4) S.T.R. 567 = 2006 (76) RLT 882 (CESTAT-Del.)] and also points out that in this case M/s. Nokia (I) Pvt. Ltd. case was distinguished. He also relies on Trade Notice issued by the New Delhi Commissionerate in support of his argum....

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....invoked in the show cause notice, extended period cannot be applied. 4. We have considered the submissions made by both the sides. We find that as pointed out by the Ld. Advocate for the respondents, Revenue has not fulfilled the basic requirement of explaining the nature of service provided by the respondents and how and why they are liable to pay service tax on the services provided by them. ....