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TMI Blog2017 (3) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... ired to discharge the service tax under Consulting Engineer service by way of reverse charge mechanism for transfer of technical know-how or otherwise. 3. On perusal of records it transpires that appellants were carrying out the activity of cutting and packing of lettuce, onion and salad mix on behalf of M/s Hardcastle Restaurants Pvt. Ltd. (HRPL). It is the case of Revenue that this activity would fall under the category of business auxiliary service under the Head of production or processing of goods for, or on behalf of client . The 2nd demand of service tax liability is in respect of the amounts paid by appellant to an entity situated abroad for technical know-how assistance rendered for setting up the plant. Show-cause-cum demand noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind Fashions Ltd. - 2007 (7) STR 178 (Tri. Bang) affirmed by Karnataka High Court reported at 2012 (27) STR J112 (Kar) (d) Sanyo Electric Company Ltd. - 2008 (9) STR 85 (Tri. Bang.) (e) Commissioner of Central Excise v. Leibert Corporation - 2014 (33) STR 161 (Tri. Mum) 4.2 It is his submission that the adjudicating authority has erred in confirming the demands raised under reverse charge mechanism for the period prior to 18.04.2006. It is his submission that Consulting Engineering Service can only be provided by a Engineering firm prior to 01.05.2006 and design and drawing are treated as goods by the customs authorities and the appellant has already discharged customs duty on such design and drawing which are imported for the erection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the submissions made by both sides, we find that the appeals of the appellants need to be accepted for more than one reason. 6.1 Firstly, the service tax liability under the category of business auxiliary services as confirmed by the adjudicating authority for the activity of cutting and packing, freezing of lettuce, onions and salad mix is concerned, we find that an identical issue came up before the very same Bench in the case of Tasty Bite Eatables Ltd. (supra) wherein the Bench held as under:- "4. We find that appellant is engaged in the activity of preparation of vegetables, fruits by processing the same packing in consumer packs for their clients. Revenue is of the view that this activity amounts to rendering of services und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification 14/2004-S.T. (as amended) dated 10th September, 2004, resulting in avoidable disputes and litigation. 2. These representations have been examined. In the cases represented, the agricultural produce namely tobacco or raw cashew, which are subject to client processing retains their essential characteristics at the output stage and therefore the processes undertaken on or behalf of client should be considered as covered by the expression 'in relation to agriculture'. Client processing which falls under business auxiliary service undertaken on the primary agricultural produce namely tobacco or raw cashew, does not result in any change in their essential character of tobacco or cashew. In the light of the above principle (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r view the activity of processing the vegetables by the appellant will be in relation to agriculture hence not liable to service tax under business auxiliary services. 6.2 It can be seen from the above reproduced ratio the facts of this case are identical to the facts of the case in Tasty Bites. Since the Tribunal has already taken a view on identical issue, we find no reason to deviate from such a view already taken. Accordingly, the demands confirmed under 'Business Auxiliary Service' on the appellants are unsustainable and are set aside. 6.3 Secondly, as regards the demand confirmed under Consulting Engineering Service, on perusal of records, we noticed that the said agreement entered by appellants with the foreign entity is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inon Ltd. (supra), which is pending before, the Hon'ble High Court. It is informed by the learned counsel for the respondent that the said decision of this Tribunal has not been stayed. In view of the above, we are of the considered view that the activities undertaken by the respondent in the case is not eligible to service tax under the category of 'Consulting Engineer's Service'." 6.4 The same view has been expressed by the Bench in the case of Kinetic Engineering (supra). As the Bench has already taken a view on the very same issue, we find that the demands confirmed under this category are also liable to be set aside and we do so. 6.5 Since we have disposed of the appeals on merits themselves, we are not recording any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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