2014 (10) TMI 96

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.... For the Appellant: Mr. N. Anand, Advocate For the Respondent : Mr. A.K. Nigam, A.R. ORDER Per B.S.V.MURTHY Appellant entered into a Technical Collaboration Agreement (TCA) with their parent company Toyota Boshoku Corporation, Japan in terms of which the appellant was licensed to manufacture certain products and also transferred technical information, designs, etc. As per TCA, the appe....

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....ent/receipt basis. In other words, in terms of Rule 6(1) of the ST Rules, 1994, the liability to pay service tax on receipt basis and w.e.f. 10.5.2008 in respect of transaction between 'associated enterprises', the liability was on the basis of accrual basis instead of receipt/payment of consideration basis. 2. According to the Research and Development Cess Act, 1986 (R&D Cess), on payments mad....

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....ntertained a view that there is a short payment of service tax on R&D cess deducted by them which had not been paid at that time of deduction but paid at a later date. Learned counsel vehemently argued that intention was to allow the benefit of deduction. In 2004, when R&D cess was introduced and service tax was liable to be paid, there was no problem because service tax was to be paid only after ....

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...., we cannot consider that the legislative intention was different and in any case, being a creation of statute, we cannot go with intention of legislation. The words in the notification and statutes are clear. Only R&D cess paid can be deducted from the service tax. Moreover iot is not that the appellant had no alternative. R & D Cess can be paid even before making the payment for imported technol....