11. Some of the other services which are not within the mischief of consulting engineer service

11.1
Services in relation to research and development activity

In case of CCE v. MRF Ltd. (Chennai), it was held by the Tribunal that the services provided by the foreign company to the respondent were for its research and development activity with regard to automotive tyres, and were, therefore, in the nature of scientific and technical consultancy service and not the consulting engineer service.

‘Scientific and technical consultancy services’ has been introduced as a new service for purpose of levy of service tax with effect from 16-7-2001.

11.2
Annual maintenance contract services

In case of Roots Multiclean Ltd. v. CCE, the appellant, manufacturer of floor cleaning machines, used to offer warranty period of one year, beyond which they used to enter into Annual Maintenance Contracts (AMC) with their buyers for repair and maintenance of machines sold. The tribunal held that, ‘engineering consultancy service’ is an intangible service. But the service rendered by the appellants during the period of dispute was a tangible service, in as much as they were physically repairing or maintaining the machines, which could be hardly equated with intangible services such as advice, consultancy, etc. It would follow that the repair and maintenance of machines undertaken by the appellants under AMCs with their buyers beyond the warranty period were not covered by ‘Engineering Consultancy Service’.

The activity became taxable service only with effect from 1-7-2003 when separate entry was included.

11.3
Planning of building, preparation of land map, property valuation

In case of CCE v. Rabindra Dass, assessee, the tribunal has held that the functions performed by a civil engineer i.e. planning of building, preparation of land map, preparation of ground plan of factory, stability certificate, installed capacity assessment and property valuation fall within the purview of the term ‘consulting engineer’.

The above view has been upheld by the High Court of Madras in the matter of Shanmugavel v. CCE. Chennai 2001 (131) ELT 14 (Mad.) wherein it was held that valuers of plant and machinery being professionally qualified engineers, be regarded as ‘consulting engineers’ and services rendered by them are liable to service tax”.

11.4
Manpower supply services

In case of SPIC-SMO Ltd. v. CCE, the tribunal has held that the appellant was only supplying manpower in view of the surplus technical manpower which the appellant had therefore, the finding that the appellant was rendering consulting engineer service was not sustainable and no service tax was to be demanded.

The above service will now be covered by the Manpower recruitment or supply agency services with effect from 16-06-2005.