2005 (9) TMI 685 - AT - Service Tax

Summary

Issues: Whether royalty charges collected by the appellants fall under the category of consulting engineer and are subject to levy of service tax.

Summary:
1. The appeal concerns the consideration of whether royalty charges collected by the appellants are subject to service tax as consulting engineer services. The appellant relies on previous Tribunal rulings to support their position.

2. The respondent argues that the royalty charges should be subject to service tax under Notification No. 18/02 ST for transfer of technology, distinguishing it from mere royalty payments.

3. The appellant contends that royalty is distinct from transfer of technology, and as no cess has been paid, service tax should not apply. The appellant asserts that previous rulings should be followed in this matter.

4. After careful consideration, the bench concludes that the payment of royalty does not constitute consultancy services and is not liable to service tax under consulting engineer. Following the precedent set by previous judgments, the appeal is allowed, setting aside the impugned order.