2016 (4) TMI 939

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....terest and imposition of penalties under the category of Consulting Engineer service. 2. As per the facts on record, M/s. Houwa Kogyo Co. Ltd. entered into agreement with Bharat Seats Ltd. for technical know how and assistance by them including guidelines, information support and expert advise etc. through their quality engineers, such services were provided during the period 1997-2002. Revenue by entertaining a view that such services would be liable to Service tax under the category of Consulting Engineer Services issued a show cause notice on 7.10.2002 proposing confirmation of service tax as also imposition of penalties etc. The said show cause notice culminated into the impugned order passed by the original authority as also confirm....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rvice recipient. The Tribunal in the case of Philcorp Ptd Ltd. vs CCE, Goa [2007 (7) STR 266 Tri-Mum] has considered an identical situation and has held as under : "3. We have considered the submissions. We find that as per Section 64 of the Finance Act 1994, Chapter relating to the service tax extends to the whole of India except the State of Jammu and Kashmir, which means that the tax will not apply, to a person or a company, which is situated out side India having no business establishment in India, Service Tax from such provider of the service cannot be recovered and it is for this purpose only that an amendment was made in 2002, when such service was treated as the taxable service and the recipient of the service was made liab....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in 2005 (179) E.L.T. 481, wherein it has been held that transfer of technology under licence agreement against payment of royalty is not the Consulting Engineers Service. Thus, on merit, the Department has no case. Moreover, we also fully agree with the Commissioner (Appeals)s view that when the respondent service provider is a company incorporated in USA and operating from USA and does not has any branch or business establishment in India, and when the service has been provided by the respondent from abroad, no service tax can be demanded from the respondent. Such receipt of a taxable service by a person in India from a foreign service provider became taxable by making the service recipient as the person liable to pay the service tax wit....