2011 (8) TMI 581

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.... were engaged in the manufacture of motor vehicles and were also rendering services in the field of engineering to their clients which fall within the category of consulting engineer. They have entered into agreements with their clients for providing technical know-how in respect of goods and clients were  supposed to pay certain amounts to the appellant in terms of the payments. Department felt that in view of the agreement the appellant were covered under the purview of consulting engineer service and therefore were chargeable to the service tax for the period 28.3.1999 to 28.8.2000. Accordingly, show-cause notice was issued to them which was confirmed by the Dy. Commissioner vide his Order-in-Original no. 6/STC/2003 dated 17.11.2003....

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....elied upon the various decisions in this regard and also relied upon the latest decision of the CESTAT Mumbai bench in CCE vs. Mahindra & Mahindra decided on 15.2.2011 vide order no. A/95/11/CSTB/C-I  in which it was held that transfer of technology and technical assistance by a foreign company to an Indian company against payment of royalty was not liable to service tax under Section 65 of the Finance Act, 1994. 4. Ld. SDR reiterates the finding of the lower authorities and submitted that appellant is liable to service tax under consultancy service. 5. After hearing both sides, we find that the issue involved in this case is whether the appellants are liable to service tax under the definition of consultancy engineer for the ser....