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TaxTMI 
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2025 (11) TMI 773
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....Technical Consultancy Service (STC) as defined under the Section 65(92) of the Finance Act, 1994. This was primarily based on the conclusion of the Department that they had offered specific Advice/ Opinion/Data in the field of Earth science. Thereafter, the Department issued the Show Cause Notice dated 07.11.2006, which was adjudicated confirming the entire demand and on appeal by the appellant, CESTAT, Bangalore Bench vide their Final Order No. 292 & 293 of 2011 dated 18.04.2011, remanded the matter to Adjudicating Authority. Subsequently, keeping in view certain submissions of the NGRI, presented before the Adjudicating Authority, an Order dated 10.12.2001 was passed again confirming the demand of Rs.1,22,18,110/- for the period from 01.10.2001 to 31.03.2005 and penalty under section 78 was also imposed. 2. Learned advocate for the NGRI submitted that it is wrong to interpret the nature of contract as that of providing the services of STC. According to him, in terms of definition of STC, it requires to fulfil certain criteria, as under: a) There should be consultation, advice or technical assistance. b) Should be provided by a scientist, technocrat or science....
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....rals was noticed by them on 10.09.2004, they felt that the service being provided by the Appellant would be covered under the services of Survey and map making. Further, NGRI found out this service covered their activities fully and they got themselves registered under this service. Further, NGRI which is constituent under the CSIR, Ministry of Science and Technology and being managed by them, had no reason to suppress any fact, as such, they have relied on the judgement of Hon'ble High Court of Telangana in the case of Commissioner of Central Excise, Hyderabad-IV Vs National Remote Sensing Agency [2021 (50) G.S.T.L. 465 (Telangana)] and Hon'ble Ahmedabad Tribunal in the case of Commissioner of Central Excise & Service Tax, Vadodara Vs Deshpande Patil Consultants [2016(46) S.T.R 748(Tri-Anmd)] in this regard. 5. On the other hand, Learned AR has primarily submitted that the Adjudicating Authority has gone through each and every contract and has recorded his findings in detail to come to the conclusion that there were certain elements of extending expert advice and consultation to their clients and was not merely a case of conducting survey or map service by the NGRI. He is also ....
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....f consultation, expert advice or technical assistance, etc. In so far as other facts are concerned, we find that NGRI is a scientific institution and service being provided by scientists and technocrats to carryout various activities, keeping in view the scope of work awarded to them by their clients. Therefore, the only issue that needs to be examined is whether when they are furnishing the reports, they are also giving any expert opinion or technical advice to their clients in addition to factual data/map, etc., based on such study or services carried out by them. In order to understand the same, the following chart has been prepared giving brief details of the projects given by different clients for the projects covered in appeal, report of NGRI and findings of the Commissioner. Name of the Sponsor Details of the Project Report of NGRI and Findings of the Commissioner 1. National Centre for Antarctic and Ocean Research, Goa (NCAOR) Two scientists from NGRI participated in the marine geophysical surveys carried out by NCAOR between 17-2-2002 and 8-2-2004 to determine the outer limits of Indian legal Continental Shelf. They mon....
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....cro earthquakes. The data is the property of NPCIL. Report: - During the period of study, very few micro seismic earthquakes were noticed. Earth quakes occurred in Koyna Warna region. Around Jaitapur, three earth quakes of magnitude less than one and one earthquake of 3.1 were noticed in 2008. Commissioner held that this was not survey and map making but scientific study for the purpose of stability of nuclear power plant. 4. Metmin Finance and Holdings Pvt Limited, Mumbai. NGRI was engaged to conduct survey in specified area, to acquire data for prospecting Uranium in the Pindwara Block and reduce the data; prepare the maps with appropriate presentation of contours in digital format. Metmin obtained the data and analysed the same for base metal exploration. All the reports, maps and information will be the property of Metmin. After the heliborne magnetic survey, NGRI submitted the maps of the area surveyed in Pindwara Block and in Pipela Block. A report on the survey and the CDs where the d....
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....nalysis and report writing. Helped GTIL in pipeline design in safe and cost effective manner in seismically active areas; to comply with statutory requirements. Karjat-Ahemdabad pipeline. The survey found subsurface faults and lineaments using space imagery etc. A lineament is a linear feature in a landscape which is an expression of an underlying geological structure such as a fault. The report said that though the pipeline passes through various lineaments, no major active faults have been observed to pose any threat to the integrity of these proposed pipeline routes and the route is safe if care is taken for design criticality. For minor faults, adequately design the pipeline based on data given in the report. Commissioner held that this is not mere presentation of data but scientific opinion indicating the regions where critical design is needed. Kakinada - Hyderabad Pipeline This report is more or less identical as above. The Commissioner here also concluded that it is not mere survey and map making bu....
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....tify the types of soil and identify areas suitable for bore wells. 9. Tapovan- Vishnugad Hydroelectric Power Project, Utttaranchal. This was a magneto-telluric and geothermal study by NGRI of the tunnels being dug in connection with the hydroelectric project. The report indicated that the temperature in a limited number of boreholes in the proposed tunnel alignment ruled out possibility of geothermal interference during excavation. Recommended more holes to be dug to get accurate information. Also a more detailed study required. Commissioner held that it was not survey or map making but scientific or technical consultancy. This was a preliminary report about the geothermal interference in the construction. No consultancy was expected nor given. 10. Government of Andhra Pradesh. Ecology of Himayat Sagar and Osman Sagar Lakes. Study sponsored by Municipal Administration and Urban Development Dept, Govt of AP. It was to study: 1. Whether water harvesting structures like chec....
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....se services would fall under the scope of STC or SMM: a) National Centre for Antartic and Ocean Research, Goa (NCAOR):- We find that it is basically to identify the area of extended continental Shelf of India, which also determined certain fixed points. We find that identifying the extended continental shelf of India and its boundary, for which NGRI is an expert, would not fall within the scope of STC and is more properly covered under SMM. b) M/s ICI Limited, Paint Business, Hyderabad:- In this case, apart from doing the survey, they have also given certain suggestions and way forward to the clients in the context of said project. Therefore, this would be covered under STC. c) Nuclear Power Corporation of India Limited, Mumbai:- In this case also, keeping in view the details of the report, it is properly covered under STC. d) Metmin Finance and Holdings Private Limited, Mumbai:- Here also, except for doing survey and preparing Map and testing some data, there has not been any specific or detailed technical opinion and therefore, this will fall under the SMM. e) Atomic Mineral Directorate for Exploration and Research (AMD), Hyderabad:- I....
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....ever, when certain specific opinion and advice are also given, based on said plain data, map and other parameters, etc., noticed during such survey and map making, then it can not remain covered within the scope of SMM. Where the survey is of prime importance, a survey report or a map based on such survey would not have any element of any expert opinion. The reliance on the case law of Halliburton Offshore Services Inc. Commissioner of S.T, Mumbai [2015 (37) S.T.R. 634 (Tri-Mumbai)] is distinguished on facts, as in that case it was held that survey was only exploration as they had not analysed any data collected by them, which is not the case here, as in the present appeal we have already held that some of their reports involved elements of consultancy, technical advice, expert opinion, etc., and therefore, the facts are distinguished. 12. Before taking up the issue of limitation, we need to refer to background of present impugned order dt.10.08.2012, which has been passed in remand proceedings in terms of CESTAT's order dt.18.04.2011. This was in relation to OIO dt.25.09.2008 and said order was set aside. We find no findings have been given by the Commissioner in his denovo pro....
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....a, passed the following order. "2. We have considered the submissions carefully. It is not in dispute that the assessee pleaded limitation against the demand of duty and that plea was not in the final order passed by this Bench. However, when this bench remanded the substantive issue for fresh adjudication by the original authority, after setting aside the impugned order, other issues including the limitation issue were not specified in the operative part of the Final Order. However, it was made clear that if the assessee was found liable to pay service tax as proposed in the show-cause notice, the tax should be determined in terms of the Tribunal's order. In this context, arguably a direction to the original authority to consider the assessee's plea of limitation and take a decision thereon could also have been incorporated. In the absence of this specific direction in the operative part of the Final Order, perhaps, the present grievance of the assesseeappellant can be entertained on merits. As rightly submitted by the learned consultant for the appellant, such omission constitutes apparent mistake and hence requires to be rectified. The case law cited by him is found to ....