TMI Blog2019 (4) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... by Scientist or Technocratic or any Science or Technology Institution or Organization. For this reason also the service does not classify as Scientific or Technical Consultancy Services. Business Auxiliary services - service received from abroad - applicability of Section 66A of the Finance Act, 1994 - Held that:- The service received from abroad is liable to service tax under section 66(A) of the Finance Act, 1944 w.e.f 18.04.2006. Penalty - Held that:- The service tax was not paid in time under the bonafide belief. Accordingly, the appellant have made out a good case for waiver of penalty under Section 80. Accordingly, penalty imposed by the lower authority are set aside. Appeal allowed in part. - Appeal No. ST/45/2008-DB - A/10639/2019 - Dated:- 3-4-2019 - MR. RAMESH NAIR, MEMBER (JUDICIAL) And MR. RAJU, MEMBER (TECHNICAL) For Appellant: Mr. Prasad Paranjape (Advocate) For Respondent: Mr. S.N. Gohil (A.R.) ORDER Per: Ramesh Nair Brief facts of the case are that the appellant is a society registered under the Societies Registration Act, 1960 and is engaged in test substance of agrochemicals, Pharmaceuticals, industrial chemicals, drugs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lient. The appellant merely submits the findings of such analysis in the form of a report to the client. As such the appellant do not provide any advice consultancy or any technical assistance to which cover under the field of science or technology. Revenue also does not say that the appellant carried out any research or rendered any assistance in the field of science or technology, therefore, the correct classification for the service is under the category of the technical testing and analysis service and does not fall under scientific and technical consultancy services. He submits that the adjudicating authority has not verified the actual contract.(protocol) and the test report prepared by the appellant, therefore, without going into the actual nature of service, he has confirmed the demand. He submits that in any case to the extent the studies/ tests are carried out for the clients located outside India and payment is received in foreign exchange, even if the contention of the Revenue to classify the service as scientific and technical consultancy service is accepted, the same will qualify for exemption Notification No. 6/99-ST dated 09.04.1999, read with CBEC Circular No. 56/5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rav Gangulay-2016 (43) STR 482 (Cal.) Crisil Ltd-2017 (48) STR 169 (Tri.-Mumbai) Reliance Industries Ltd.-2016 (44) STR 82 (Tri.-Mumbai) 5. On the other hand, Sh. S.K. Shukla Ld. Superintendent (AR) appearing on behalf of the Revenue reiterates the finding of the impugned order. He also placed reliance on the following judgment: Wanbury Ltd.-2016 (43) 226 (Tri.-Mum.) Mineral Exploration Corporation Ltd.-2015 (38) STR 421 (Tri.-Mum) Steelcast Ltd.-2009 (14) STR 129 (Tri.-Del.) National Productivity Counsel- 2008 (12) STR 491 (Tri.-Del.) Inox Leisure Ltd.-2016 (44) STR J276 (SC) 6. Heard both the sides and perused the records, we find that there are two issues for our consideration as under: a) Whether the services provided by the appellant for the period April 2001 to June 2003 should be liable for service tax of ₹ 28,16,832 under Scientific or Technical consultancy service or it is not taxable and classifiable under technical testing and analysis service as claimed by the appellant. b) Whether the service received by the appellant from abroad between May 2006 and November 2006 are liable to service tax of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st analysis of sample and providing report which the appellant carried out and the other is consultancy provided on the basis of report by some expert Scientist Or Technologist, therefore both the services are performed by two separate person, hence, it cannot be said that the appellant is providing Scientific or Technical Consultancy Services. From the definition of Scientific or Technical Consultancy Services it is clearly provided that the consultancy needs to be provided by Scientist or a Technocrat or any Science or Technology institution or Organization. In the present case the Testing and Analysis of sample of and preparation of its report is not carried out by Scientist or Technocratic or any Science or Technology Institution or Organization. For this reason also the service does not classify as Scientific or Technical Consultancy Services. In the Tribunal judgment in the case of Avra Laboratories Pvt. Ltd (Supra), the appellant was undertaking organic synthesis related process research for their client and declared such services falling under Scientific or Technical Consultancy Services. The Tribunal as observed as under: From the foregoing, what emerges is that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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