service tax liability

One of my neighbour is doing gold tonching(trade name) business which is testing of gold ornament sample to assertain karat scale by using computerized heavy machine ( machine price 12 lacs ) and his turnover is approx. 15 lakhs per annum, although as per pratice gold jewellery is considered under micro and small scale industry but this business should come under inspection and testing service simce computerized testing report comes out.....but the his business is not registered under service tax cat.how it is possiable????