TMI Blog2007 (8) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... ble - Appeal No. ST/41/2005 - Final Order No. 993/2007 - Dated:- 24-8-2007 - [Order per : S.L. Peeran, Member (J)]. - This is a Revenue appeal arising from Order-in-Appeal No. 21/2005, dated 7-3-2005 by which the assessee's appeal has been allowed and the Service Tax raised under the heading of Consulting Engineer' has been dropped on the ground that the assessee was a foreign company which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company. In view of the position, I would agree with the appellants contention that relationship between the appellants and the local company is more than a consultant-client relationship. All the activities undertaken by the appellants on behalf of the joint venture company is in their own interest rather than in the interest of the joint venture company for the reasons stated supra. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y for the manufacture of automobiles and parts. The activities undertaken by the appellants cannot be called as 'advice, consultancy or technical assistance' extended to a client in the field of any engineering discipline or in the context of any specific problems. The training and other technical support Is an ongoing process as agreed upon by which the appellants have to ensure that the products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erland, are mentioned in the agreement under the heading "Royalty". Payments of royalty in the common parlance are not insisted as payment for a service provided. It is under stood as a share of product or profit reserved by owner for permit ting another the use of his property. Royalty payments in the present case for the use of technology and know-how cannot be equated with any services to be p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28-6-2007 [2007 (7) S.T.R. 603 (Tribunal)]. 3.1 We find that in the cited judgments, this very issue was considered and the Tribunal while allowing the appeal on an identical issue referred to large number of Tribunal rulings deciding the issue in assessee's favour. The ratio of the judgment is that Service Tax is not leviable when a foreign company has transferred technology to the Indian Com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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