Truck maintenance and safety certificate is out the scope of technical inspection & certification service

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 Where assessee dealing in LPG was performing certain activities in relation to maintenance and safety of tank trucks and was issuing a certificate to effect that tank trucks were purged/degassed, said activities could not be considered to be a service within scope of ‘technical inspection and certification service’

Classification of services – Section 65(108) of the Finance Act, 1994 – Technical inspection and certification (OR) – Assessee dealing in LPG sent LPG through tank trucks to various LPG bottling plants of oil distribution companies , Whenever LPG tank truck required any repair or mandatory testing of safety valves, tank truck was cleaned and completely degassed .During this activity, water was filled in tank mounted on truck and discharged ,  Water was displaced by LPG vapors . For this activity, assessee collected cost of water and labour charges from truck owner

Adjudicating Authority held that said activities undertaken by assessee would fall under category of ‘technical inspection and certification service’ – Whether assessee though was performing certain activities in relation to maintenance and safety of tank trucks and was issuing a certificate to effect that tank trucks were purged/degassed, same could not be considered to be a service within scope of ‘technical inspection and certification service’ – Held, yes  [In favour of assessee]

Citation : [2018] 96 taxmann.com 28 (Bangalore – CESTAT)