TaxTMI 
TaxTMI 
2009 (6) TMI 67
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.... dated 29.7.2004 passed by the Commissioner of Customs and Central Excise (Appeals-II), Hyderabad. 2. We heard both sides. 3. Revenue proceeded against the appellants for demand of Service Tax of an amount of Rs. 6,85,199/- for the period from 1.7.2003 to 31.3.2004 under the category of 'Technical Inspection and Certificate Agency'. Interest also has been demanded. The appellant is American Quality Assessors (India) Pvt. Ltd. They are operating as licensed registrar under the office of American Quality Assessors (AQA), USA. In terms of the MoU, the appellant is to represent AQA, USA for the purpose of assisting clients in achievement of ISO9000, ISO-14000 and QS-9000. As per Para-1 (13) of the MoU "with regard to the processin....
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....ing comments to the customer. (iii) The appellant reviews the corrective action on documentation received from the customers and conducts an audit/ assessment of the quality system at customer's place with reference to the ISO standard. After successful completion of the assessment process, such assessment is sent to AQA-USA, which issues ISO-9000/QS-9000/ISO-14000 certificates. In other words, the appellant does not issue any certificate. AQA-USA, thereafter, reviews the audit conducted and sent by the appellant for its conformation to the international standards and puts up the case to its registration committee for approval. On approval from the registration committee, AQA-USA issues the certificate to the customers directly with ....
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....9;. It is significant to note that 'goods, material and immovable property' have one common feature. They are all inanimate, thus, these are susceptible to scientific verification of physical and mechanical properties and also of functional utility, if it happens to be an appliance or equipment. (vi) Therefore, in order to understand the word 'process' in the definition, it is appropriate to apply the Rule of Construction Noscitur A Sociis to the expressions, 'goods', 'materials' and 'immovable property'. Under this Rule of Construction, the meaning of a word is to be judged by the company it keeps. This rule according to Maxwell (Interpretation of Statutes, 11th Edition page 321) means that when t....
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....management processes in an organization. Further, this activity is supposed to certify that the subject matter qualifies or maintains: * Specified standards, or * Functionality or * Utility or * Safety or * Any other characteristic parameters, * But does not include any service in relation to inspection and certification of pollution level. (viii) The above are applicable to inanimate things, appliances, mach or activities relating to operation of steps involving goods, things or mankind devices. There are hardly associated with management processes found in human organization including commercial and industrial organizations. Therefore, it would be proper to confine the scope of the definition of 'Technical Inspect....
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....tion and certification of pollution levels." 5.1 The appellants has given a flow chart indicating the activities carried out by them for certificate of quality management system practiced by the clients, the same is reproduced below. FLOW CHART OF ACTIVITIES CARRIED OUT BY AQA (INDIA) FOR CERTIFICATE OF QUALITY MANAGEMENT SYSTEM PRACTICED BY CLIENTS AS PER ISO/IEC GUIDE 62 : 1996 AQA (I) receives the Company Information Sheet (CIS) from prospective clients. AQA (I) reviews the CIS. Prepares quotation and sends it to prospective client. The client forwards the signed contract AQA (I), provides client with all information connected with Quality Management Systems (QMS) Certification. Client prepares the Quality Manual (QM....
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....ted by AQA (I) in order to monitor the continued implementation of Quality Management System by the client. 5.2 No doubt the appellant receives certain consideration for the service rendered by them. Without going into the nitty gritty, we can safely conclude that the activities of the appellant are pre-requisites for any client in India to obtain ISO certification. However, the certification relates only to management system or management processes. The Principles of Ejusdem Generis is clearly applicable in the interpretation of the word 'process' which is found in the definition of 'Technical inspection and Certification Service'. No doubt, the said word 'process' keeps company with the other words 'goods or....