9911796707
TMI Blog2020 (9) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... scientific or technical consultancy service , the service which when rendered qualifies to be called as export of services and therefore, no service tax is chargeable on such service. In these three appeals, there is no demand on this head at all. The second source of income for the appellant is, after the seeds are developed and patented by M/s Aventis, they provide the seeds to the appellant who get them multiplied by the farmers and buy-back such seeds. In order to help farmers efficiently multiply the seeds, the appellant provides guidance to them and charges a fee for providing such guidance. It is the case of the revenue that the amounts which are charged by the appellant from the farmers is chargeable to service tax under the hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier order of this bench covered the period 2004-05 up to March, 2012. The present appeals covered the period April, 2012 to March, 2015. Subsequent demand covering the period April, 2015 to June, 2017 has already been decided by the Commissioner (Appeals) in their favour following the ratio of the earlier order passed by this bench. Therefore, only the present three appeals are pending. After hearing both sides and perusing the records, we find the issues that fall for consideration in these appeals are: (a) Whether the appellant is liable to pay service tax on the amounts which they received in foreign currency for rendering services to their parent company, M/s. Aventis Cropscience GmbH, Germany (hereinafter referred to Aventis ) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered qualifies to be called as export of services and therefore, no service tax is chargeable on such service. In these three appeals, there is no demand on this head at all. 4. The second source of income for the appellant is, after the seeds are developed and patented by M/s Aventis, they provide the seeds to the appellant who get them multiplied by the farmers and buy-back such seeds. In order to help farmers efficiently multiply the seeds, the appellant provides guidance to them and charges a fee for providing such guidance. It is the case of the revenue that the amounts which are charged by the appellant from the farmers is chargeable to service tax under the head of scientific or technical consultancy service . After examining th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing scientific research. Scientific research is not confined to fundamental research but can also be applied research. Learned counsel also tried to impress upon us that plant breeding is not science which we find without any force. If plant breeding is not a science at all then nothing in the modern agriculture which resulted in green revolution is science. We find that the appellant, under the first agreement, rendered scientific and technical consultancy services to their overseas client and received consideration in foreign exchange. For the period 01.04.2004 to 14.03.2005, they are not liable to pay service tax as they were covered by the exemption notification 21/2003-ST. With respect to the service tax post introduction of the Export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax proposed to be charged is on this leg of transaction. After having received the reports the clients in Germany files applications for and obtains IPR and thereafter the second phase of the activity viz., multiplication of the seeds developed and their sale in India begins. The service in question is not relatable to the second phase of the activity which begins only after they have obtained IPR. Therefore, we find that the services in question are delivered partly outside India and partly within India and the payment for the services is received in foreign exchange and hence these services should be treated as export of services and therefore they are not liable to service tax on these services. 6. Insofar as the second element ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
