9911796707
|
Home
Issues involved: Stay application and appeal regarding levy of service tax on technology transfer fee under Consulting Engineer Services.
Summary: Issue 1: Levy of service tax on technology transfer fee The appellants entered into agreements with foreign companies for technology transfer, paying fees exceeding &8377;1 Crore. Revenue levied service tax under Consulting Engineer Services u/s 65(31) of the Finance Act, 1994. Appellants contested, citing the services under technology transfer agreements do not fall under consulting engineer's service. Tribunal noted various rulings supporting the appellants' position. Issue 2: Commissioner's view Original authority accepted Tribunal rulings and dropped proceedings. However, on revision, the Commissioner disregarded the judgments and took a different view. Tribunal held that the Commissioner should have followed the Tribunal's decisions, as he was bound by them. The Commissioner's independent view without considering the judgments was deemed incorrect in law. It was also pointed out that the Commissioner had dropped proceedings for another unit in a similar situation, indicating inconsistency in decision-making. In conclusion, the Tribunal allowed the stay application and appeal, providing consequential relief, as the issue was already covered by previous Tribunal decisions, and the Commissioner was expected to adhere to those precedents.
|
