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2019 (2) TMI 85 - AT - Service TaxExtended period of limitation - Revenue neutrality - import of services - reverse charge - Scientific and Technical Consultancy service - appellants have entered into a master agreement with M/s. Europlex – Ireland for receiving R&D services. By such agreement, it was agreed that M/s. Europlex shall establish a separate technology department which shall provide R&D assistance to the appellant - Held that:- Undisputedly, M/s. Europlex is engaged in design, development and manufacture embedded control and communication products and software. They have taken up the responsibility of putting up a separate department for research and development of the projects and products of appellant and therefore it can be strongly inferred that they have the capacity for such research and development activities. The amount paid by the appellant to M/s. Europlex is also for the services of such assistance rendered in R&D activity. The definition of taxable service included not only advice, consultancy but also technical assistance rendered in any manner, either directly or indirectly, in disciplines of science or technology. It can be concluded that the assistance given by M/s. Europlex to the appellant for its research and development activity is nothing but technical assistance for improvement of its projects / products - In the present case, there is no transfer of technical know-how. It is only a technical assistance for research and development activities, which would definitely fall under scientific or technical consultancy service - demand do not sustain. Time Limitation - Held that:- The show cause notice for the period October 2007 to April 2008 has been issued on 24.4.2010. Being a revenue neutral situation, as per the decisions of the Tribunal, the demand raised invoking extended period is not sustainable. The appellants had disclosed the amounts in the accounts and financial statement. The issue whether the transaction would fall under Scientific or Technical Consultancy service is interpretational too - apart from a bald allegation that appellant suppressed facts there is no positive act on the part of appellant brought out in show cause notice or impugned order as to suppression - appeal succeeds on limitation coupled with revenue neutrality. Appeal allowed - decided in favor of appellant.
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