2006 (9) TMI 17

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....he lower authority demanding Service Tax of Rs .850215/- from the appellants on "Consulting Engineers Service " for the period May, 2002 to July 2004 and imposing penalties on the party under various provisions of the finance Act,1994. Hence the present appeal. 2. After examining the records and hearing both sides, we find that the above demand is on the royalty paid by the appellants to their ....

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....by relying on the Tribunal's decision in Pfizer Ltd. V. Commissioner of Central Excise, Mumbai [2006 (3) S.T.R. 693 (Tri.) =2005 (188) E.L.T 456(Tri.-Mumbai )]. Counsel has also relied on certain other decisions of the Tribunal:- (i) Commissioner of Central Excise, Mangalore v. Daylight Electronics Pvt. Ltd [2006 (1) S.T.R.264 (Tri.-Chennai] (ii) Navinon Ltd. v. Commissioner of Central Excis....

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....ervice rendered in the form of advice, technical assistance or consultancy by a professionally qualified engineer or firm of engineers in one or more disciplines of engineering. In order to levy tax on such service, it is incumbent on the Taxman to show that the service was rendered by professionally qualified engineer or engineering firm. This burden has not been discharged in this case. Further,....

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....now-how, the assessee is capable of manufacturing and marketing the product on his own, ordinarily without any further advice or consultancy from the supplier of the know-how. Later on, if, in due course of time, they are faced with any technical hitch in applying the know-how, they might consult the supplier of know-how and take their advice, in which event it will be open to the department to le....