2013 (3) TMI 739 - AT - Service Tax

Summary

Issues involved: Whether payment of royalty towards technical know-how is liable to tax under the category of "Consulting Engineer's Services".

The appeal was filed by the Revenue against the Order-in-Appeal passed by the Commissioner of Central Excise & Customs (Appeals), Nashik. The lower appellate authority relied on a previous decision of the Tribunal in the case of Bajaj Auto Ltd. and held that the activity in question does not fall under the purview of Consulting Engineer's Services. The appellant, M/s. Supreme Industries Ltd., was allowed the appeal based on this decision. The Revenue challenged this decision, stating that they have filed an appeal before the Hon'ble High Court of Bombay against the Tribunal's decision.

The learned Additional Commissioner (AR) representing the Revenue informed that the matter is still pending before the Hon'ble High Court of Bombay.

The appellant's counsel referred to a similar case of Arvind Fashions Ltd. v. Commissioner of Service Tax, Bangalore, where the Tribunal held that payment of royalty for technical know-how is not taxable under Consulting Engineer's Services. The Revenue had appealed this decision before the Hon'ble High Court of Karnataka, which upheld the Tribunal's view.

After considering the submissions from both sides, the Tribunal concluded that the service received by the appellant does not fall under the category of Consulting Engineer's Services. The payment of royalty for technical know-how is not covered within the scope of this service. Therefore, the appeal was dismissed as the Tribunal found no merit in it.