The Supreme Court has ruled that the import of “Engineering Design & Drawings” is classified as “design services” and is subject to service tax under the Finance Act, 1994. This decision was made in the case of Commissioner of Customs, Central Excise & Service Tax v M/S Suzlon Energy Ltd. The court also stated that the same activity can be taxed as both goods and services if the contract is indivisible. The case involved Suzlon Energy Ltd. and its sister company, M/s Suzlon Energy GmbH, which provided designs for wind turbine generators. The designs were classified as “goods” under the Customs Act, but the court ruled that they were still subject to service tax. The court also held that M/s Suzlon Energy GmbH was liable for service tax on the amount received for its services in preparing the designs.
Source a2ztaxcorp
