Please Help: service tax on ascertain quality by touchstone by jewellers
Posted Date : 18-Jun-2011 , 06:08:19 am | Posted By: CA SANDEEP AGGARWAL
Category :
Service Tax | Answers :
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Comments :
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a jewell doing certification of hallmarking and also ascertain quality of jwellry by touchstone. first service i know is taxable. I want to know whether second service also is taxable. In service tax two type of service taxable. 1. technical testing & analysis service and 2. is Inspection & certification. plz clearify the situation. |
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Answers:
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 Answer by: PRIYANKA |
| Hello sandeep, as per the facts told by u and as per my opinion the taxable service here should be technical inspection and certification rather than technical testing and analysis, as the former head seems more specific in this given situation, and when a single service falls in more than one head due to its nature, we tax it under the more specific head. and in the given case certification of hallmark is involved so acc. to me it should be technical inspection and certification, as inspection in its very definition will include testing of goods also for its quality.
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| Answer by: Mrattunjay |
| 2nd one
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| Comments |
| Posted By : CA SANDEEP AGGARWAL |
23-Jun-2011, 01:50:59 |
| Hello, Priyanka, I agrred from you but here a judgement in which ascertain quality by touchstone is not covered under Inspection & certification while other activity i.e. hallmarking is absolutely covered. But i want to know that service of ascertain quality by touchstone is covered in technical testing & analysis or totally exempt from service tax.
Technical Inspection and Certification Service
19. The Revenue demanded Service Tax under the category of technical inspection and certification service from a jewellery appraiser attached to a bank and rendered services of examining jewellery and certifying its quality with the help of touchstone for which he received monthly remuneration. The person was not technically qualified, but was using a touch-stone for ascertaining the quality of jewellery and a precision balance to weigh the goods.
In the context of jewellery, according to the Tribunal the technique used should be capable of revealing the chemical composition of goods in terms of percentage of gold and copper and the touch-stone was not capable of yielding such results. Hence, the appellant was held as not covered by the Technical Inspection & Certification Service.
S. Murugan vs. CCE, Tirunelveli, 2008 (9) STR 70 (Tri. – Chennai). (Stay order dated 24-7-2007)
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