S. MURUGAN Vs. CCE

JUDGEMENT

(1.) THE appellant is a jewel appraiser attached to M/s. Lakshmi Vilas Bank, Kovilpatti. The lower authorities have demanded service tax of Rs. 12,821/ - (along with education cess) from him for the period July 2003 to March 2005 on the ground that he had rendered a taxable service in the category of 'technical inspection and certification' to the bank during the above period. It appears from the records that during the above period, the appellant received remuneration on a monthly basis from the bank for the service of examining jewellery and certifying its quality. The demand is on the gross amount for the above period. It is the case of the appellant, reiterated today by his counsel, that the above service does not fall within the scope of 'technical inspection and certification' as defined under Section 65 of the Finance Act, 1994. This definition reads as under:

(2.) AFTER giving careful consideration to the submissions, I have not found formidable support to the decision of the lower authorities. Prima facie, it appears, 'technical inspection' must involve some technique. In the case of jewellery, this technique should be capable of revealing the chemical composition of the goods in terms of the percentage of gold and copper. The Revenue has not established that the appellant's touchstone was capable of yielding such result. What the bank wanted to know was whether the jewellery, which was referred to the appellant for inspection and certification, was upto the mark in terms of purity. This could be done only through a quantitative appraisal involving scientific technique. The appellant was not shown to have undertaken any such activity. Therefore, prima facie, it is difficult to sustain the decision of the lower authorities.

(3.) IN the result, there will be waiver of predeposit and stay of recovery in respect of the amounts of service tax, education cess and penalties. (Dictated and pronounced in open Court)