CROMPTON GREAVES LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) HEARD both sides. The appellants filed this appeal against the impugned order passed by the Commissioner (Appeals).

(2.) THE brief facts of the case are that the appellants are engaged in the manufacture of excisable goods. The appellants had recovered certain amounts from their clients during the period in dispute towards services rendered by them as consulting engineers. The Revenue issued a show cause notice demanding service tax in respect of the consideration received by the appellants as consulting engineers. The adjudicating authority confirmed the demand and imposed penalties. The appeal filed by the appellant was dismissed by the Commissioner (Appeals).

(3.) THE appellant also submitted that the appellant is a body corporate as the appellant is a limited company and it is only with effect from 1 -5 -2006 the definition of 'consulting engineer' was amended in the Finance Act to the effect that 'consulting engineer' means any professionally qualified engineer or any body corporate or any other firm who, either directly or indirectly, renders any advice, consultancy or technical assistance in any manner to a client in one or more disciplines of engineering. The contention is that the period in dispute is prior to 1 -5 -2006. The appellant relied upon the decision of the Hon'ble Karnataka High Court in the case of CST, Bangalore v. Turbotech Precision Engineering Pvt. Ltd. reported in : 2010 (18) S.T.R. 545 (Kar.), where the Hon'ble High Court held that prior to amendment to definition of 'consulting engineer' with effect from 1 -5 -2006, the services rendered by a company are not covered under the definition of 'consulting engineer service'. In view of this decision, the contention is that the demand is not sustainable.