2007 (11) TMI 29

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....of condensers (referred to as "licenced products" in the above agreement) in India. As per the terms of the agreement, they were liable to pay to Mr. Hergeth, as consideration for the above benefit, royalties at the rate of 5% in respect of the sales of the licenced products in India and 8% in respect of the export of the licenced products out of India for a period of 7 years. Accordingly, the appellant- company paid royalties to the Belgium collaborator during the period July, 2002 to March, 2004. The department, in a show-cause notice, demanded service tax on the royalties so paid, in the category of Consulting Engineers' Service. They took the view that Consulting Engineers' Service, as defined under Section 65 of the Finance Act....

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....otification, a recipient of Consulting Engineers' Service can be said to be liable for payment of service tax on such service only with effect from 1-1-2005, i.e., after the period of dispute in the present case. In this connection, learned consultant has relied on the decision in Aditya Cement v. Commissioner of Central Excise, Jaipur [2007 (7) S.T.R. 153 (Tri.) = 2007 (218) E.L.T. 116 (Tri.) = [2007] (10) VST 13 (CESTAT - New Delhi)] and also the decision in Ispat Industries Ltd. v Commissioner of Central Excise, Raigad [2007 (8) S.T.R. 282 (Tri.-Mumbai)]. Learned consultant has also contended that any service of the kind of Consulting Engineers' Service was not involved in the transfer of technical know-how to the appellant under....