2007 (3) TMI 140

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....he agreement of transfer of technology and know-how, services rendered by them were covered under the category of "Management Consultancy Services" and, therefore, being the provider of services, the UK company was required to discharge service tax liability. In Appeal No. ST/207/06, which covers the period 2002 to 2003, the Indian company i.e., Castrol India Ltd., being the recipient of such services has been held liable to pay service tax of Rs.1,11,46,800/- + Rs. 1,81,68,000/-. In the first appeal penalty of amount equal to service tax amount has been imposed on the UK company under the provisions of Section 76 and 77 of the Finance Act, 1994 and penalty of amount equal to tax has been imposed on the UK firm under the provisions of Secti....

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....gly the Indian Company has requested Castrol to impart to it the benefits of specialized technology and technical services and know how in the UK to enable it to blend, produce and market Castrol products (herein after defined) in most efficient manner and which Castrol has agreed to do subject to the terms and conditions herein after contained". 4. The relevant clauses of the agreement dated 16th August, 2001 are reproduced herein below (A) "Castrol, UK has long been engaged in the business of blending and producing various types of lubricants and in the research and development, manufacture and sale of automotive lubricants, lubricating oils and other oils and greases and ancillary materials used in connection therewith; and (B) Castro....