2007 (6) TMI 525

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....o the Indian Company would come within the ambit of 'Consulting Engineer'. The Respondents have taken several grounds and submit that the type of service rendered by them will not come within the ambit of 'Consulting Engineer'. They also submitted that they were located abroad and the Commissioner has no jurisdiction to proceed against them. However, their pleas were rejected by the Original Authority but the Commissioner (A) upheld their submissions. The finding of the Commissioner (A) recorded in the impugned order is reproduced herein below : I have perused the records of the case and have carefully considered the submission made during the personal hearing. It is seen that the appellants have entered into an agreement with the India....

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....ther Royalty would amount to value of services and whether manufacturers can render the service of a Consulting Engineer, I would like to cite para 4 and 5 of the case law cited supra below : "Para 4. Since Ciba Geigy Ltd. Switzerland, are also manufacturers of the same goods, the definition of consulting engineer and providing the services as per sub-section of Sections 65 of the Act cannot be upheld." "Para 5. The amounts, which the appellants have to remit to M/s. Ciba Geigy Ltd. Switzerland are mentioned in the agreement under the heading "Royalty". Payments of royalty in the common parlance are not insisted as payment for a service provided. It is understood as a share of product or profit reserved by owner for permitting another t....