2005 (11) TMI 470 - AT - Service Tax

Summary

Issues Involved: Revenue appeal against service tax levy on technical know-how transfer and scientific consultancy services.

Issue 1 - Technical Know-How Transfer:
The Respondent, a marketing unit for products of certain companies, transferred technical know-how from a Malaysian company before setting up a manufacturing unit. The department levied service tax, but the Commissioner noted that such transfer does not fall under consulting engineer services. Citing various rulings, the Tribunal rejected the appeal, stating that the transfer of technical know-how does not constitute consulting engineering services.

Issue 2 - Scientific Consultancy Services:
In another case, the Commissioner held that an assessee engaged in manufacturing ferro silicon and providing in-house technology development services did not qualify as a service provider for scientific or technological consultancy. The Commissioner's decision was supported by relevant judgments, and the Tribunal found no merit in the appeal, ultimately rejecting it.

This judgment clarifies that the transfer of technical know-how and in-house technology development activities may not always fall under the purview of service tax for consulting engineering or scientific consultancy services, based on the specific nature of the activities and relevant legal interpretations.