2025 (9) TMI 814

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....E and CAB, proceedings were initiated and adjudication authority as per the impugned order confirmed the demand of duty and also imposed interest and penalty under various provision of law. Aggrieved by said order, present appeal is filed. 3. The issue involved in the present appeal is explained as per the following table: Sl. No. Issue involved Period involved Amount of Service Tax (Rs.) 1 Demand on advance received for the period prior to 16.06.2005 (categorized under 'Consulting Engineer Service') 2005-06 to 2007-08 21,60,784 2 Demand under the category 'Consulting Engineer Service' 2004-05 to 2007-08 49,14,204 3 Demand under the category of Commercial Training or Coaching Service 01.07.2004 to 31.07.2009 1,18,72,271 4. When the appeal came up for hearing, the Learned Counsel for the Appellant submits that as regarding demand of service tax on advance received prior to 16.06.2005, the statutory provisions under the Finance Act, 1994, prior to 16.06.2005 was with regards to discharge of service tax on consideration received only to the extent of services provided by the provider of service. The requirement of discharge o....

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....ding the discipline of Computer Software Engineering. The Learned Counsel also drew our attention to Section 6 of the Service Tax Rules, 1994 and the amendment carried out with from 12.09.2007. The taxable service under Section 65(105)(g) is in relation to advise, consultancy or technical assistance in any manner in one or more disciplines of Engineering. The activity of computer Software Engineering was specifically excluded from the purview of Consulting Engineer Service upto 15.05.2008 (The period covered by the show cause notice). The activities as mentioned above cannot be any advice, consultancy or technical assistance in any of the disciplines of Engineering. The attempt in the show cause notice and order is to relate it as using expertise in Information Technology. When computer Software Engineering was specifically excluded from the purview of Consulting Engineer Service and fell within the ambit of Information Technology Service, which was introduced w.e.f. 16.05.2008 such attempt to relate the activity to a discipline of Engineering is ill founded. The activities undertaken by the appellant being not an activity classifiable under Consulting Engineer Service and the remo....

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....on as is clear from the Government Orders issued by the Government of Kerala. 4.4. As regarding invoking extended period of limitation, that since the assessee has expressed bona fide belief that service rendered by it was not chargeable for service tax, then in such case, demand should only be restricted to normal period of limitation and the extended period cannot be invoked for effecting the recovery. The Learned Counsel also drew our attention to the definition of taxable services where it is specifically stated that it is only to any person by a Consulting Engineer of Engineering. The Learned Counsel also submits that the issue is considered by the Tribunal in the matter of M/s Chanakya Mandal Parivar vs CC, Pune (2021 (44) GSTL 280 (Tri. Mumbai). 4.5. As regarding invoking the extended period of limitation, the Learned Counsel submits that the Appellant being part of the State Government, there is no term commercial or non-profit motive and it is clarified only by way of amendment to Section 65(105)(zzc) through Finance Act, 2010. Further, there is no finding to satisfy the fraud or suppression of facts for evasion of duty in the operative portion of the impugned Order-....

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....te capacity, which may be dispensed with without infringing any public right or public policy. (as quoted in Nath Gorai (supra)." 5. The Learned Authorised Representative (AR) for the Revenue reiterated the finding in the impugned order and also produced the list of courses offered by LBS Centre for Science and Technology where most of the courses are not establishment which issue any certificate of diploma or degree or any other education qualification recognized by law. Facts being so, the activities are squarely applicable under the category of 'Commercial Training or Coaching Service'. 6. In rejoinder, Learned Counsel drew our attention to the Article 13, and 162 of the Constitution of India and also drew our attention to the sanction of the Government regarding the courses and submits that once it is approved by an order of State Government of Kerala, it is to be treated as approved courses and not liable to be service tax under the category of 'Commercial Training or Coaching Service'. 7. Heard both sides. As regarding demand on advance received for the period prior to 16.06.2005 (categorized under 'Consulting Engineer Service'), we find that the requirement of disch....