2004 (10) TMI 10

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.... Section 65 of the Finance Act, 1994. It also imposed penalties on the respondents under Sections 76 to 78 of the said Act. The decision of the original authority was set aside by the Commissioner (Appeals) in an appeal filed by the assessee. It was held by ld. Commissioner (Appeals) that the service received by the assessee from the foreign company was not "Consulting Engineer Service" but in the nature of "Scientific and Technical Consultancy Service", which had become a taxable service with effect from 16-7-2001 only. The respondents had received the service from the foreign company and paid for the same prior to 16-07-2001. Therefore, ld. Commissioner (Appeals) set aside the demand of Service Tax. The present appeal is against the decis....

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....ing works or civil/mechanical/electrical engineering works or relating to construction management." Ld. Commissioner (Appeals) has treated the services obtained by the respondents from abroad as "Scientific and Technical Consultancy Service", which was not a taxable service prior to 16-7-2001. The period of dispute in the instant case is 2000-01. 4. Ld. Counsel. has referred to the terms of the relevant agreement between M/s. MRF Ltd. and M/s. Tyreign Inc., USA. I have perused this agreement available on record. It is seen that this agreement provided for the services of Mr. Fred Lewis (Director and Secretary of the foreign company) being given to M/s. MRF Ltd. for its "research and development activities with regard to automotive tyres"....