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2020 (9) TMI 258 - AT - Service TaxLevy of Service Tax - Scientific or Technical Consultancy service or not - export of services - amounts which they received in foreign currency for rendering services to their parent company, M/s. Aventis Cropscience GmbH, Germany - amounts which they charge from the farmers for providing guidance in multiplying the seeds? HELD THAT:- The issue decided in the case of BAYER BIO SCIENCE PVT LTD VERSUS CCCE & ST, HYDERABAD – II [2019 (2) TMI 1567 - CESTAT HYDERABAD] in favour of the assessee and it was held that while the nature of service is ‘scientific or technical consultancy service’, the service which when rendered qualifies to be called as export of services and therefore, no service tax is chargeable on such service. In these three appeals, there is no demand on this head at all. The second source of income for the appellant is, after the seeds are developed and patented by M/s Aventis, they provide the seeds to the appellant who get them multiplied by the farmers and buy-back such seeds. In order to help farmers efficiently multiply the seeds, the appellant provides guidance to them and charges a fee for providing such guidance. It is the case of the revenue that the amounts which are charged by the appellant from the farmers is chargeable to service tax under the head of ‘scientific or technical consultancy service’. After examining this issue at length, this bench had decided that the nature of service rendered by the appellant to the farmers is one of the “agricultural extension" and it does not qualify to be called as ‘scientific or technical consultancy service’. Therefore, no service tax can be levied on the amounts which the appellant receives from the farmers on this count. The appellant is not liable to pay service tax on the amounts which they have received from the farmers for providing guidance in multiplying the seeds - Appeal allowed - decided in favor of appellant.
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