2011 (9) TMI 810

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....provide technical assistance to MUL in this regard. As per the agreement, the respondent was to depute their personnel to give technical advice and guidance in connection with manufacture of motor vehicles based on the technology transferred. As per the agreement for transfer of technical know-how and technical assistance, Maruti Udyog Ltd. was to make a lump sum payment of amount of Y 90,00,00,000/- (Rs. 29,33,71,766/-) in three instalments and besides this, they were to pay running royalty at the rate specified in the agreement. The department was of the view that the amount received by the Respondent was for providing consulting engineer's services, which is taxable under Section 65(105)(g) read with Section 65(31) of the Finance Act. It....

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....vided engineering consultancy services to M/s. Maruti Suzuki Ltd. 5. We have carefully considered the submissions from both the sides and perused the records. 5.1 On going through the provisions of the agreement of the respondent with M/s. Maruti Udyog Ltd., as discussed in the show cause notice, we find that as mentioned in para-2 of the show cause notice, the agreement between M/s. Maruti Motors, Japan and M/s. Maruti Udyog Ltd., Gurgaon was to transfer the technical know-how and also provided assistance in this regard to Maruti Udyog Ltd., Gurgaon for manufacture and sale of certain models of cars in India. The technical know-how made available by the respondent to M/s. Maruti Udyog Ltd. was to be used only for manufactur....