TMI Blog2017 (3) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the appellant is required to discharge the service tax under Consulting Engineer service by way of reverse charge mechanism for transfer of technical know-how or otherwise? - Held that: - the said agreement entered by appellants with the foreign entity is in respect of transfer of technical know-how and design and drawing in order to establish the facility in India. We find that there is no consultancy or technical assistance extended given by the Engineering firm - similar issue decided in the case of CST vs. Leibert Corporation [2014 (3) TMI 265 - CESTAT MUMBAI], where it was held that The said service does not, in any way, relate to supply of technical know-how which the respondent has undertaken. Appeal allowed - decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudicating authority after following due process of law confirmed the demand raised along with interest and also imposed equivalent amount of penalty. 4. Learned Counsel would submit that as regards the transaction with HRPL, the activities carried out by appellants in respect of cutting and packing of lettuce, onion and salad mix would be covered under exemption notification 14/2004-S.T as amended by 19/2005-S.T. and circular No. 143/12/2001-ST dated 26.05.2011 which talks about these kind of services rendered to processing service of 'agriculture produce'. He would submit that identical issue in respect of competitors came up before this Bench in the case of Tasty Bite Eatables Ltd. 2016 (41) STR 117 (Tri. Mum). He would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction between them is not taxable prior to 10.04.2006. For this proposition he relied upon the decision of the Tribunal in the case of Sifi Technologies Ltd. 2011 (21) STR 252 (Tri. Chennai). 5. Learned D.R. would submit that in respect of the service tax demand under the category of business auxiliary service , the appellant had rendered the services of procuring or producing on behalf of HRPL. It is his submission that undoubtedly appellants are undertaking the activity of cutting and packing, freezing of lettuce, onions and salad mix is not covered under the benefit of notification 14/2004-ST as the service tax notification exempts only the agriculture produce and not the activity undertaken by appellants. 5.1 Learned D.R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at by undertaking processing of vegetables they have undertaken an activity of manufacture and hence not covered under service tax liability. The appellant has also relied upon the board's circular dated 26-5-2011. 5. We find that the appellant is preparing the vegetables by sorting, cleaning, boiling and freezing the same and subsequently packing it in unit packings to be sold by their customers under the brand name. The first appellate authority has held that the activity undertaken by the appellant is not in respect of agriculture are in relation to agriculture. Learned departmental representative would also argue on the same grounds. We find that the said argument does not hold water inasmuch, the board vide circular number 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereafter packing the same and (ii) processing of raw cashew and recovering kernel, undertaken for, or on behalf of, the clients by processing units are covered by the expression ..... processing of goods for, or on behalf of, the client.....and provided in relation to agriculture, .. appearing in the said notification. 3. Also where the commission agents stationed abroad provide business auxiliary service to promote the export of rice, said business auxiliary service is covered by Notification 13/2003-S.T. (as amended) because, the word 'rice' is mentioned under the explanation to the term 'agricultural produce', in the inclusive portion along with other items like cereals, pulses, etc. 4. Trade Notice/Public N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow and design and drawing in order to establish the facility in India. We find that there is no consultancy or technical assistance extended given by the Engineering firm. We agree with the learned Counsel that the very same issue has been decided by Tribunal in the case of CST vs. Leibert Corporation (supra) wherein the Bench held as under:- 7. 'Consulting Engineer's Service' relates to rendering of advice, or technical assistance in any branch of engineering to a client by a consulting engineer or an engineering firm. The said service does not, in any way, relate to supply of technical know-how which the respondent has undertaken in the present case. They have supplied to the client in India know-how by way of patents ..... X X X X Extracts X X X X X X X X Extracts X X X X
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