TaxTMI 
TaxTMI 
2007 (10) TMI 226
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....tant Commissioner of Central Excise raising huge demands of Rs. 1.25 crores under the category of 'Consulting Engineer Service', Rs. 2,86,116 under the 'Clearing and Forwarding Agents' and Rs. 21,900 under the category of 'Scientific or Technical Consultancy Service'. The assessee had an agreement with M/s. Recon Health Care Ltd., for commercial sale of trademarks or brand names owned by the assessee for commercial consideration. They have also entered into an agreement for transfer of technical know-how, according to which the assessee sold the technical know-how for a consideration to the said party. Revenue considered this receipt of commercial consideration for transfer of technical know-how to come under the cat....
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....ave carefully gone through the case records and the written submissions as well as oral submissions made by the appellant. It is seen that the appellants have been alleged as providing Engineering Consultancy Service and the service under the head "Scientific and Technical Consultancy" for the manufacture of Pharmaceutical products. The lower authority refers to the deed of assignment of trade-mark for sale dated 30-6-2000 and sale of technical know-how as the basis of the show-cause notice. However, he has not satisfactorily explained as to how the appellants are rendering the captioned services. The preamble to the said agreement for sale of know-how reads as follows: Whereas: (a) Transferor is proprietor of technology and techni....
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....ith the appellants and only they have allowed the buyers to produce the goods for a certain period on payment of certain royalty or charges. Even such transactions have been held to be not amounting to rendering of Consulting Engineer Service by various appellate forums. Moreover, going by the constitution of the appellant's organization and the buyer's company's profile, it cannot be said that the appellants can be termed as an Engineering Consultant and the buyers as a company receiving Engineering Consultancy Services. The next issue is as to whether the appellants have rendered the services as a Clearing and Forwarding Agent. Neither the show-cause notice nor the Order-in- Original explain as to how the appellants have be....
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....s juncture, I have to make certain observation about the quality of the show- cause notice and the Order-in-Original. This is a high demand case and I do not think sufficient care and thought have gone into drafting show-cause notice. The show-cause notice merely alleges that the appellants were engaged in rendering various services without substantiating as to how the department had come to such conclusion. Does it mean that proper investigation has not been made ? The adjudicating authority had just repeated whatever stated in the show-cause notice. This only shows lack of supervision in regard to the investigation and drafting of show-cause notice and non-application of mind on the part of the adjudicating authority. Accordingly, I se....