5. Service should pertain to one or more disciplines of engineering

5.1
Engineering is the application of scientific or mathematical principles to develop economical solutions to technical problems, creating products, facilities, and structures that are useful to people. Engineers use imagination, judgment, and reasoning to apply science, technology, mathematics, and practical experience. The result is the design, production, and operation of useful objects or processes. The broad discipline of engineering encompasses a range of specialized sub-disciplines that focus on the issues associated with developing a specific kind of product, or using a specific type of technology. A comprehensive list of various disciplines of engineering is given at the end of paper.

5.2
A service provided by a consulting engineer should pertain to one or more disciplines of engineering to be exigible to service tax under the consulting engineer service. To burden a consulting engineer with service tax, it should be shown that the so called advice, consultancy or technical assistance pertains to one or more discipline of science. An advice, consultancy or technical assistance pertaining to finance, law or management given by a consulting engineer to a client is not exigible to tax under the consulting engineer service.

5.3
The scope of the services of a consultant may include any one or more of the following categories :—

(i) Feasibility report;
(ii) Pre-design services project report;
(iii) Basic design engineering;
(iv) Detailed design engineering;
(v) Procurement;
(vi) Supervision and project management;
(vii) Supervision of commissioning and initial operation;
(viii) Manpower planning and training;
(ix) Post-operation and management;
(x) Trouble shooting and technical services, including establishing systems and procedures for an existing plant.

Though the above list is not exhaustive, it reveals the wide scope and nature of the services which may be rendered by a consulting engineer.

5.4
A service provided by a consulting engineer which does not necessarily involves his expertise in one or more discipline of science is also not covered under the category of consulting engineer service. In order to be taxed under this category, it is required that that particular service can be provided by an engineer alone and no one else. If same service can be provided by a Chartered Accountant or a Cost Accountant or a Lawyer or a Management Consultant, then also it cannot be taxed under the category of Consulting Engineer Service .

Chartered Accountant, Cost Accountant, Actuary, or a person holding diploma in relation to insurance can provide services as surveyors or loss assessor . Therefore, insurance surveyor and loss assessors are not categorized as Consulting Engineer Service but under a different category i.e. ‘Insurance Auxiliary Services’

`Architecture’ and `engineering’ are two separate disciplines of technical education and these are two separate professions. Hence service of architect can not be taxed under Consulting Engineer Service. They are taxed under Architect Service’ or ‘Interior Designer Service’.