TMI Blog2008 (10) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... sident and M. Veeraiyan, Member (Technical) Shri M. Venkataraman, Advocate for the appellant Shri R.K. Verma, Authorized Departmental Representative (DR) for the Revenue [Order per M. Veeraiyan, Member (Technical)] - This is an appeal against the order of the Commissioner No.22/BKG/2007 dated 13.8.07 in so far as the same relates to demand of Rs.2,79,30,192/- on foreign design and drawings along with interest and imposition of penalty under Sections 76 and 77 of the Act. 2. Heard both sides. The learned Advocate also filed a written submission at the time of hearing which has been taken into account. 3. The relevant facts, in brief, are as follows: a) The appellant is a company incorporated in Japan and has a projec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fice of TISCO at Jamshedpur. He held that the requisite technical information is part and parcel of the said designs and drawings; the rendering of services was completed by supplying the design and drawing and the technical information to the plant at Jamshedpur. The advices, the consultancy or technical assistace were given in the form of drawings and designs. He, accordingly, confirmed the demand of duty under the head "consulting engineering service". d) The Commissioner's order relates to demand of duty on other services also and the total demand of tax confirmed is Rs.4,55,10,464/-. However, the dispute is restricted to the demand under the category of 'consulting engineer' relating to design and drawing supplied from Japan. The pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable for payment of service tax: i) Aditya Cement vs. C.C.E.., Jaipur - 2007 (7) STR 153 (Tri-Del.) ii) Foster Wheeler Energy Ltd. vs.C.C.E. - 2007 (7) STR 443 (Tri-Ahmd.) iii) Prabhat K. Tyagi vs. C.C.E., Bangalore - 2008 (85) RLT 694 (CESTAT-Bang.) iv) C.C.E., Ludhiana vs. M/s Bhandari Hosiery Exports Ltd. - 2008 - TION- 604 - CESTAT - Del. d) He submits that the invocation of extended period of limitation is not sustainable. The Commissioner has rightly held that no penalty is imposable on them holding that there were valid reasons for invoking Section 80 of the Act. Having held that no penalty is imposable under Section 78 and provisions of Section 80 are attracted, confirmation of the demand relating to per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e India but the act of such rendering or transferring designs and drawings, materially evidenced and admitted by SOJITZ, had culminated within India. Hence, the service purported to be originated in Japan had travelled to India, thus, the activity falls within the ambit of the laws of India, more so, under Section 64 of the Act ibid. iv) Secondly, such designs and drawings along with technical information admitted by SOJITZ were deemed and required to be utilized in the territory of India i.e. at Jamshedpur. SOJITZ had never disputed this fact that such designs and drawings were not delivered and utilised in India. The supply of design and drawings could not have been completed without the delivery of the same in India. It is also not the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendering taxable service." 5.2. The entire work relating to designs and drawings has been completed in Japan; the appellant has also engaged foreign based sub contractors in connection with the work of completion of the designs and drawings; the designs and drawings have been delivered through courier. The contract refers to supply of designs and drawings by way of 'purchase' on payment of the agreed 'price'. These designs and drawings may have technical inputs in them. However, if a question is asked as to whether these designs and drawings which were sent as a parcel or through courier would attract the provisions of Customs Act, the answer is in the affirmative. 5.3. Under the above circumstances, the view canvassed by the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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