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Lubrizol India Pvt. Ltd. Versus Commissioner of CE & ST, (LTU) , Mumbai

2015 (11) TMI 222 - CESTAT MUMBAI

Export of Service - Whether during the period 1.7.2003 to 31.3.2007, services rendered , if any, by appellant under Technology Transfer Agreement with Lubrizol Corporation USA is taxable under ‘Business Auxiliary Services’ if any, is amounting to export of services or not? - Held That:- There is no dispute as to that appellant is receiving an amount of 3% of sales value of sales effected by Lubrizol corporation USA in India directly by bidding in various tenders - Assuming that appellant has ren .....

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ber (Technical) For the Petitioner : Shri. H.G. Dharmadhidari, Advocate For the Respondent : Shri. R.K. Das, DC (AR) ORDER Per: M.V. Ravindran: 1. This appeal is directed against order-in-appeal No. SB/01/LTU/Mum/2010 dated 19.01.2010. 2. The relevant facts that arise for consideration are ofter scrutiny of the records of appellant, it was observed that appellant was receiving commission on sale of goods of Lubrizol Corporation USA and the said commission was based on technology transfer agreeme .....

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rder, appellant preferred an appeal before the first appellate authority. The first appellate authority after granting an opportunity of personal hearing to the appellant and considering the submissions made at the time of personal hearing, concurred with the views of adjudicating authority and rejected the appeal. 3. Learned advocate appearing on the behalf of appellant would take us to the technology transfer agreement, show cause notice, order-in-original and the impugned order. It is his sub .....

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sed by a company situated abroad and being a foreign based principal, these services would fall under the category of export of services. For this proposition, we relies upon the judgment of the Honorable High Court in the case of CST, Mumbai-II Vs. SGS India pvt. Ltd.-2014 (34) STR 554 (Bom.), judgment of the Tribunal to the case of Microsoft Corporation (I) (P) Ltd. vs. CST New Delhi 2014 (36) STR 766 (Tri.-Del.), CST Mumbai Vs. Vodafone India Ltd-2015 (37) STR 286(Tri.-Mum). 4. Learned depart .....

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e considered the submission made at length by both sides and perused the records. 6. The issue involved in this case is during the period 1.7.2003 to 31.3.2007, the services rendered , if any, by the appellant under Technology Transfer Agreement with Lubrizol Corporation USA is taxable under Business Auxiliary Services if any, is amounting to export of services or otherwise. 7. In our considered view, without on going into various other arguments raised by both sides, we find that there is no di .....

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High court of Bombay in the case SGS India Pvt. Ltd. (supra). We reproduce the relevant paragraph numbers 23 & 24. 23. We are of the opinion that the services rendered in the present case are fully covered by the clarification given and even by the principle laid down in the decision of the Hon ble Supreme Court of India. In this regard, if one refers to the allegations in the show cause cum demand notice, it is apparent that the same refers to the testing charges received by the responden .....

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nature of the tax concluded that it is rendered by a Chartered Accountant, for example when he advises his client or audits his account. Similarly, a cost accountant charges his client for advice as well as doing his work of costing. For each transaction or contract, Chartered Accountant/Cost Accountant renders professional based services. However, Mr. Sridharan submits if the taxable event is the provision of services, then, the place where the services have been rendered is of significance. T .....

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from India. In other words, the clients abroad were desirous of confirming the fact as the whether the goods imported complied with requisite specifications and standards. Thus, client off the respondent located abroad engaged the services of the respondent of inspection and testing the goods. The goods were tested by the respondents in India. The goods were available or their samples were drawn for such testing and analysis in India. However, the report of such tests and analysis was sent abro .....

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Service Tax liability. The Tribunal relied upon the circulars issued and prior thereto the view taken by it in the case of KSH International Pvt. Ltd. V. Commissioner and B.A. Research India Ltd. The case of the present respondent was said to be covered by orders in these two cases. To our mind, once the Hon ble Supreme Court has taken the view that Service Tax is a value added tax which in turn is destination based consumption tax in the sense that it taxes noncommercial activities and is not .....

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