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TMI Blog2017 (7) TMI 1233X X X X Extracts X X X X X X X X Extracts X X X X ..... (g) “taxable service” under ‘consulting engineers service’ means provided or to be provided to a client by consulting engineer in relation to advise consultancy or technical assistance in any manner in one or more disciplines of engineering. In the present facts and circumstances, there is no relation of any Consulting Engineering Service with any client or appellant. Thus, Service Tax is not attracted under the head “Consulting Engineer Services” on reverse charge basis. Appeal allowed - decided in favor of appellant. - Appeal No.ST/1817/2011-CU(DB) - ST/A/71843/2018-CU[DB] - Dated:- 2-8-2018 - SHRI ANIL CHOUDHARY, MEMBER (JUDICIAL) And SHRI ANIL G. SHAKKARWAR, MEMBER (TECHNICAL) Appellant: Shri Nishit Gupta, Consultant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. Such details were provided vide letter dated 10/09/2010. Further, the details of payment, as required under the agreement were also be provided vide letter dated 4 th March 2010 and 06/08/2010. The applicant could not produce a copy of the agreement, due to national security reasons. 4. Thereafter, show cause notice dated 14/09/2010 was issued alleging that the appellant was liable to discharge service tax in terms of Section 66 A of the Finance Act, 1994 under the classification Consulting Engineering Services for payment made for transfer of technology and technical assistance fees. It was further alleged that the appellant has willfully suppressed the fact of receiving taxable services viz. Consulting Engineer Services , fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry course of business and they are subject to audit by the CAG. 7. So far the merits are concerned, the ld. Counsel urges that payment to Rosoboronexport for transfer of technology and providing technical assistance, training and documentation are not taxable under Consulting Engineering Services , even the classification is erroneous. The technical assistance and training provided is towards transfer of technology and not in isolation. It is further submitted that transfer of technology envisages transfer of technical documentation, technical assistance for setting up the manufacturing and overhaul facility including training of employees, etc. Accordingly the payments have been made by the appellant on specific elements of the technol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant is that of licensor and licensee respectively and accordingly, the same is not covered under the head Consulting Engineer Service . 8. Section 65(31) of the Act defines a Consulting Engineer as Consulting Engineer means any professionally qualified engineer or any body corporate or any other firm, which either directly or indirectly, renders any advice, consultancy or technical assistance, in any manner, to any person, on one or more disciplines of engineering. It is further urged that technology transfer agreement to manufacture aircraft in India would not amount to provision of any advice, consultancy or technical assistance in the field of engineering and accordingly the same would not be covered under Consultin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit, service tax was demanded under reverse charge mechanism for the period October 2006 to October 2007. This Tribunal observed, after considering the agreement, that the appellant/assessee is a Government of India organization engaged in the manufacturing of defence-related equipments. On perusal of the agreement, the Tribunal found that the said agreement is for transfer of licence technical documentation for the manufacture of fighter aircraft, in the facility of HAL. As the agreement being confidential and secret, it was not reproduced in the order. Further, the Tribunal observed that the agreement is for transfer of technology for the manufacturing of fighter aircraft, for the purposes of which experts from the foreign company are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided from outside India and received in India, Rules, 2006, wherein under Rule 3(iii)(c) it is provided that subject to Section 66A of the Act, the taxable services provided from outside India and received in India shall, in relation to taxable services specified in Clause 105 of Section 65 of the Act, but excluding those specified in clause (ii) of this Rule, be such services as are received by a recipient located in India for use in relation to business or commerce . 10. The learned AR for Revenue have relied on the findings in the impugned order. 11. Having considered the rival contentions, we are satisfied that the payment made by the appellant company is for transfer of technology under intergovernmental agreement and not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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