TaxTMI 
TaxTMI 
2015 (11) TMI 222
X X X X Extracts X X X X
X X X X Extracts X X X X
....ol Corporation USA and the said commission was based on technology transfer agreement. It appeared that service tax liability arises on such amounts received as commission under the category of Business Auxiliary Services as defined under section 65 (19) of the finance act, 1994. A show cause notice was issued. Appellant contested the show cause notice on merits as well as on limitation. The adjudicating authority after following due process of law confirmed the demand raised for a period 1/7/2003-31.3.2007, interest thereof and also imposed penalties. Aggrieved by such an order, appellant preferred an appeal before the first appellate authority. The first appellate authority after granting an opportunity of personal hearing to the appell....
X X X X Extracts X X X X
X X X X Extracts X X X X
....SA and he is paid for such services rendered by him. It is his submission that whether appellant renders any after sale services or otherwise, clouser of the agreement expects him to do so hence the services are taxable under the category of 'Business Auxiliary Services'. He reiterates the findings of both the lower authorities. 5. We have considered the submission made at length by both sides and perused the records. 6. The issue involved in this case is during the period 1.7.2003 to 31.3.2007, the services rendered , if any, by the appellant under Technology Transfer Agreement with Lubrizol Corporation USA is taxable under 'Business Auxiliary Services' if any, is amounting to export of services or otherwise. 7. In our considered ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on professions, the service rendered are of advise and hence, the Hon'ble Supreme Court with regard to the nature of the tax concluded that it is rendered by a Chartered Accountant, for example when he advises his client or audits his account. Similarly, a cost accountant charges his client for advice as well as doing his work of costing. For each transaction or contract, Chartered Accountant/Cost Accountant renders professional based services. However, Mr. Sridharan submits if the taxable event is the provision of services, then, the place where the services have been rendered is of significance. The services will be taxable only if they are provided within India. Mr. Sridharan submits that Service tax is a destination based consumption t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rnational Pvt. Ltd. V. Commissioner and B.A. Research India Ltd. The case of the present respondent was said to be covered by orders in these two cases. To our mind, once the Hon'ble Supreme Court has taken the view that Service Tax is a value added tax which in turn is destination based consumption tax in the sense that it taxes noncommercial activities and is not a charge on the business, but on the consumer, then, it is leviable only on services provided within the country. It is this finding and conclusion of the Hon'ble Supreme Court which has been applied by the Tribunal in the facts and circumstances of the present case." 8. In yet another case, in a similar issue it is now held in the favor of the appellant by the majority decisi....