TMI Blog2018 (10) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... ntation and marketing support. The first appellate authority records in Para 15 that the MOU is not pure consulting agreement as it involves duties of an integrator of agricultural technologies and operations and to act as technical, implementing and supervising agency, etc. - the Order-in-Original does not discuss what portion of the services rendered by them are technical and consultancy services and how much tax is leviable thereon. Even in the grounds of appeal, the appellant does not disclose the details of how much of their work pertain to consultancy and how much of it pertain to supervision and management. Having held that the contract is divisible, it was necessary for the lower authorities to discuss what portion of the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the case pertains to 2009 and the appeals filed during 2008, 2009 2010 are already being taken up for disposal at this stage. Therefore, we allow the early hearing application and examined the issue on merits. 3. The appellant herein entered into a memorandum of understanding with the Government of Andhra Pradesh to provide Israeli technology in the field of agriculture to help the state. The scope of their work has been laid down in Paras 1 to 1.7 of the agreement which reads as follows: 1. K-III Project K-III Project will be undertaken on approximately 14,000 Acres of land in the western part of Chitoor District. The geography of the lands that constitute the K-III Project is appended to the Memorandum of Understanding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HC (India) will give minimum commitment for marketing of the produce from the lands under the K-III project as per the schedule in Annexure-6; 1.7 BHC (India) will assist and participate in the further development of Agri Export Zones of Chittoor, which is already established under a separate arrangement. 4. Annexure 3 referred to in Para 1.5 above is based on the total amount payable for technology transfer, supervision, implementation and marketing support. Show cause notice dated 15.10.2007 was issued to the appellant alleging that services provided by them to the Government of Andhra Pradesh amount to scientific or technical consultancy service as defined in Sec.65 (92) of the Finance Act, 1994. It was alleged that the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant are scientific and technical consultancy and therefore, they are liable to pay service tax along with interest and are also liable for penalties for not discharging their service tax liability. 6. We have gone through the Order-in-Original, the Memorandum of Understanding entered into, the grounds of appeal and heard departmental representative s arguments. 7. The agreement is not a composite works contract as it does not involve supply of any materials by the appellant. This is in the nature of providing technical expertise for implementation of the project as well as the management of the project itself. As the title to annexure 3 of the MOU indicates, it involves technology transfer, supervision, implementation and marketing su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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