TMI Blog2004 (10) TMI 597X X X X Extracts X X X X X X X X Extracts X X X X ..... ies on the respondents under sections 76 to 78 of the said Act. The decision of the original authority was set aside by the Commissioner (Appeals) in an appeal filed by the assessee. It was held by Commissioner (Appeals) that the service received by the assessee from the foreign company was not Consulting Engineer Service but in the nature of Scientific and Technical Consultancy Service , which had become a taxable service with effect from 16-7-2001 only. The respondents had received the service from the foreign company and paid for the same prior to 16-7-2001. Therefore, Commissioner (Appeals) set aside the demand of Service Tax. The present appeal is against the decision of the lower appellate authority. 2. SDR reiterated the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Counsel has referred to the terms of the relevant agreement between M/s. MRF Ltd. and M/s. Tyreign Inc., USA. I have perused this agreement available on record. It is seen that this agreement provided for the services of Mr. Fred Lewis (Director and Secretary of the foreign company) being given to M/s. MRF Ltd. for its research and development activities with regard to automotive tyres . The nature of the services provided by M/s. Tyreign Inc., USA, to MRF is also seen to have been noted by the original authority. The Order-in-Original noted thus: As per the agreement, M/s. Tyreign Inc., USA, through the deputation of technicians, provided the company complete technical information, methods, procedure, data and techniques and also u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Technical Consultancy Service , which was specified for the purpose of levy of Service Tax with effect from 16-7-2001, was not a part of the pre-existing Consulting Engineer Service prior to the said date. In other words, Scientific and Technical Consultancy Service was a new service introduced on 16-7-2001. Counsel has referred to section 137 of the Finance Act, 2001, which provided for the levy of Service Tax on 15 new items. New Services is an expression used in section 137 and the first item in the list of 15 new services is Scientific and Technical Consultancy Service . Ld. Counsel has convincingly argued that Scientific and Technical Consultancy Services having been introduced as a new service for the purpose of levy o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
