3 G CONSULTANTS Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE impugned order sustained demand of service tax under the category of 'Consulting Engineer' service rendered by the Appellants during the period 2003 -04 to 2005 -06. It was found that the Appellants had incurred liability to service tax of Rs. 5,37,577/ - during the material period. The original authority had also demanded applicable interest and imposed penalties under Sections 76, 77 and 78 of the Finance Act, 1994. Vide the impugned order, the Commissioner (Appeals) vacated penalties imposed on the Appellants but sustained demand of service tax and interest.

(2.) LD . JDR submits that the Appellants were engaged in providing services under the category 'Consulting Engineer'. In any case, the claim of the Appellants is that the impugned activity was not taxable and that they were not providing 'Consulting engineer' services is not substantiated.

(3.) ON a perusal of the records and considering the rival submissions, we find that prima facie the activities undertaken by the Appellants are classifiable under 'Survey and Map -making Services'. We find considerable force in the plea of the Appellants that by virtue of definition of SMS in the Act, the impugned activities carried out by the Appellants for the Government department were not exigible under that entry. The impugned order held that the Appellants had rendered 'Consulting Engineer' service. We find that, prima facie, this finding is incorrect. The tax liability and interest sustained by the impugned order is not quantified. In the circumstances, we find that the Appellants have made out a strong prima facie case for waiver of pre -deposit of the dues adjudged. The application for waiver of pre -deposit of the dues adjudged against the Appellants is allowed and recovery thereof stayed pending decision in the appeal.