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2016 (4) TMI 598 - AT - Service TaxDemand of Service tax - Scientific or technical consultancy service and business auxiliary service - providing material procurement assistance and technical knowhow as per agreement - Appellant contended that their activity is not covered by the definition of 'scientific or technical consultancy' - Held that:- the appellant has been procuring material for M/s. Doctors' Organic Chemicals Ltd under an agreement and the period for which that activity was undertaken predates the incorporating within the structure of the appellant. Section 65(19) of Finance Act, 1994 incorporates procurement of goods or services, which are inputs for the client as 'business auxiliary service'. The claim of appellant that this has reference to a third party is not acceptable as, in the present instance, the client is M/s Doctors' Organic Chemicals Ltd. Hence, the taxability of amounts charged form the client is not in doubt. Therefore, the impugned order is upheld only to the extent of ₹ 9,19,094/- for rendering 'business auxiliary service' with interest thereon. The demand of tax for rendering 'scientific or technical consultancy service' does not survive. Penalties are set aside - Appeal disposed of
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