Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 555 - AT - Service TaxDemand of service tax - Classification of service - Annual technical support fee - Consulting Engineers' Service or Intellectual property services (IPR) - Held that:- agreement provides for supply of technical know-how and assistance for manufacture of diesel engines and components thereof. The technical knowhow includes information regarding design data, manufacturing and quality control impressing processing, design and construction of plant facility, quality related problems of the licenced product and training to the personnel of the Indian entity. The agreement also envisages supply of updated data based on the current research and development and engineering done by the foreign service provider. It is seen that the activity undertaken would more appropriately fall under ‘Intellectual Property Rights Service' and not under ‘Consulting Engineers' Service' and, therefore, the demand of Service Tax under the category of Consulting Engineers' Service is not sustainable in law. The ratio of the decisions relied upon by the lower appellate authority would also apply - agreement provides that there are no separate charges for on site assistance and only travelling and living expenses shall be reimbursed by the service recipient to the service provider - Decided against Revenue.
|