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TMI Blog2007 (3) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... ther and disposed of by this common order. 2. In Appeal No. ST/206/06, the Commissioner has levied Service tax of Rs. 4,04,23,400/- on Castrol Ltd., UK, for the period 1997 to 2001 on the ground that as per the agreement of transfer of technology and know-how, services rendered by them were covered under the category of Management Consultancy Services and, therefore, being the provider of services, the UK company was required to discharge service tax liability. In Appeal No. ST/207/06, which covers the period 2002 to 2003, the Indian company i.e., Castrol India Ltd., being the recipient of such services has been held liable to pay service tax of Rs.1,11,46,800/- + Rs. 1,81,68,000/-. In the first appeal penalty of amount equal to serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... larly the automobile industry, it has become necessary for the Indian company to improve the quality of its products and to obtain continuous upgradation of its product ranges to meet the changed demand in India. Accordingly the Indian Company has requested Castrol to impart to it the benefits of specialized technology and technical services and know how in the UK to enable it to blend, produce and market Castrol products (herein after defined) in most efficient manner and which Castrol has agreed to do subject to the terms and conditions herein after contained . 4. The relevant clauses of the agreement dated 16th August, 2001 are reproduced herein below (A) Castrol, UK has long been engaged in the business of blending and producin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The services rendered by the UK Company to the Indian Company can by no stretch of imagination be considered as falling within the definition of Management Consultant as set out above. The contention of the ld. SDR that since the agreement dated 29-3-93 refers to request of the Indian Company to the UK Company to impart benefits of specialized technology and technical services and know-how in the UK to enable it to blend, produce and market Castrol products and since marketing will fall within the definition of working system of an organization, Service tax has rightly been confirmed under the heading of Management Consultant , is not tenable as we do not find any force in the above submission that know-how for marketing the product is in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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