Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2013 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 228 - AT - Service TaxConsulting Engineer - By the Agreement dated 16-7-1998 the appellant was to supply imported designs and drawings to be delivered in India at purchaser’s and Engineer’s Office valued at Japanese YEN 211,200,000 (Rs. 8.86 crores). The said Agreement also stipulates services of supervision of detailed engineering, design and drawing originating in India, supervision of manufacture of indigenous equipment at Indian works, supervision of erection and start-up & commissioning. - The second Agreement dated 6-6-1998 relates to supply of indigenous design & drawing to be delivered in India at purchaser’s & engineer’s office valued at ₹ 1,75,79,000/-. Held that:- In the case of Solitz Corporation v. Commissioner of Service Tax, New Delhi - [ 2008 (10) TMI 35 - CESTAT NEW DELHI] where the facts are more or less similar to present one, following an earlier decision viz. Kirloskar Electric Co. Ltd. v. Commissioner - [2006 (10) TMI 26 - CESTAT, BANGALORE], the Tribunal has held that drawing and designs ought to be treated as ‘goods’ and the said finding cannot be considered unreasonable. - The Hon’ble Supreme Court in the case of Associated Cement Companies Ltd. v. Commissioner of Customs [2001 (1) TMI 248 - SUPREME COURT OF INDIA], has held that drawings, plans, manuals, etc., specified in Chapter 49 of the Tariff Act are thus statutorily regarded as goods attracting a specified rate of Customs duty on their import into India. Designs and drawings which were imported and assessed as ‘goods’, cannot be subjected to Service tax, hence, no Service tax is chargeable on that part attributing towards the value of designs and drawings. Regarding levy of service tax on import services - Supervision services - held that:- levy of Service tax on the service provided by a foreign service provider and availed by an Indian receiver has been introduced by an amendment to Section 66 of Finance Act, 1994 i.e. by inserting a new Section 66A in the Finance Act w.e.f. 18-4-2006. The Service tax, it is held, cannot be charged for services rendered for the period prior to 18-4-2006 by a foreign service provider to a service receiver in India irrespective of the fact whether the service is received in India or outside India on the basis of a Rule prescribed in the Service Tax Rules, 1994. - Decided in favor of assessee.
|