2007 (4) TMI 48

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....e by the appellants in the appeal during the course of hearing. Regarding the allegation that the appellants have paid royalty fees to their holding company viz. Molex Inc., U.S.A. for use of technology provided by M/s. Molex Inc., I find that the amount paid was for transfer of technology and does not involve rendering of advice or consultancy. In the case of M/s. Navinon Limited v.Commissioner of Central Excise, Mumbai - 2004 (172) E.L.T. 400, the Hon'ble Tribunal (Mumbai) held that royalty payment for use of technology and know how is a share of profit reserved by owner for permitting another person to use his property and cannot be equated with any service attracting service tax. Therefore, I hold that royalty paid for supply of technic....

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....t the appellants are only generalizing the whole issue without providing the specific details of the deductions they are seeking. I am of the view that without the documentary evidence and the nature of expenditure claimed on deduction from the gross amount, no deduction can be permitted. Therefore, the order of the lower authority on this count does not call for any interference. Regarding the claim of the appellants that service tax had been enhanced only from 14-5-2003 and that the rate of service tax applicable from 1-3-2003 to 13-5-2003 is only 5%, 1 find that the rate of service tax applicable from 1- 3-2003 to 13-5-2003 is only 5%, so long as service is rendered prior to 13-5-2003 and billing is made during the said period. This i....

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....hnical know-how from foreign collaborator has been held to be not coming within the category of Consulting Engineer. The Tribunal, in the case of BST Ltd. v. CCE, Cochin - 2006 (4) S.T.R. 40 (Tri.-Bang.), has followed the judgment of 5 rulings which are in assessees' favour. The finding recorded in Paras 4 to 6 of BST Ltd. is noted herein below. "4. The learned Advocate urged that this issue has already been covered by large number of decisions of the Tribunals including this Tribunal. She relied on the following decisions of the Tribunal wherein it has been held that the technical know-how given by the foreign collaborator would not amount to the services of the 'consulting engineer.' Hence, it was urged that the demands and penalties a....