SPIC-SMO LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS case relates to demand of service tax of about Rs. 93 lakhs from M/s. SPIC -SMO Ltd., a division of SPIC. The impugned orders have held that the appellant was rendering "Consultant Engineering Service" to various clients and service tax was payable on the receipts from such Consultancy Service. The contention of the appellant is that they were performing only manpower supply in view of the surplus technical manpower which they were having. It is being pointed out that neither they as an organisation nor individual employee were engaged in any Engineering Consultancy Service. During the hearing of the case, ld. Counsel took us through the analysis made in the impugned orders as well as the Terms of the Contract. He has pointed out that in regard to the agreement with M/s. Haldia Petrochemicals Ltd., the responsibility was defined as under : -

(2.) WE have perused the records and heard the ld. SDR also. It is clear from the description of responsibility and service indicated in the contract that the appellant had, only supplied technical manpower for working in the leasing organisations under their instructions. This is clear from the illustrative cases discussed above. In these facts and circumstances, the finding that the appellant was rendering Consultancy Engineering Service is not sustainable and so is the service tax demand. The impugned orders are set aside and the appeal is allowed.