TaxTMI 
TaxTMI 
2017 (5) TMI 957
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....se relates to the transaction between the appellant and a Chinese Institute - Chinese Engineering Institute (GAMI). In terms of the agreement with the GAMI, the appellant is to receive technology transfer and engineering services with reference to aluminum smelter and anode plant of the appellant. The contract consisted of supply of basic engineering design, engineering services and training for the plant of the appellant. The contract is sought to be put to service tax liability for three basic activities:- (a) Supply of engineering drawing and design for the plant upgradation of the appellant; (b) Training of the employees of the appellants by GAMI, in China; (c) Engg. technical service with reference to such upgadation of plant ....
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....ter due assessment cleared the same. When the drawing and design documents were imported as goods and assessed accordingly by the Customs Authorities, there is no question of service tax liability on the same value. He relied on the certain decided cases in support of his submissions. 4. Ld. AR submitted that drawing and design are very much essential for execution of the service contract by GAMI, with reference to the appellant's plant. In the contract with the appellant, the role of GAMI has been explained. The engineering, drawing and design being very essential to the technical service of engineering consultancy provided by GAMI in India, the value should form part of the various considerations and accordingly, he supported the finding....
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.... known that when any technology, drawings & designs, any technical information, etc. for setting up of any plant in India are imported into India, it has to be imported in the form of documents, which are no doubt become a goods being a physical form. After importation into India, it has to be passed through Customs procedure under the provisions of Customs Act, 1962 and the Customs duty is payable as per the Customs Tariff Act, 1975. But, at the same it cannot be ignored that the 'technology and engineering' of smelter and anode plant was the 'consulting engineer service' which was first imported into India in document form and then subsequently, the entire technology and technical information was executed on the site of the Noticee by the....
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....oods under the provisions of Customs Act, 1962, irrespective of the what articles may be or may contain. 8. We note that in similar set of facts, the Tribunal in the case of Mitsui & Co. Ltd. - 2012 (28) STR 491 (Tribunal-Kolkata) has held that the supply of imported and indigenously procured drawing and designs, treating them as goods, cannot form part of tax liability under "Consultancy Engineer Service". The Tribunal held as under:- "7.7 The ld. Spl. Counsel argued that even if the designs and drawing charges are treated as goods and subjected Customs duty, the same also could be assessed to Service tax. In this connection, he has referred to the judgment of the Apex Court in the case of Tamil Nadu Kalyana Mandapam Assn. v. Union of In....
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....ly have any value at all. In the present case, we find that the appellant entered into four different contracts with M/s. TISCO for setting up of a Skin Pass Mill. This project included supply of equipments against two contracts which are not disputed by the Department, whereas the third contract related to supply of designs & drawings procured from Japan and also procured indigenously, had been disputed. The designs & drawings are prepared in Japan and sold to the appellant independently as is evident from the fact that the same are assessed as 'goods' under the Customs Act. Similarly, the designs and drawings procured in India are assessable as goods under the Central Excise Act. Hence, the said ratio is not applicable to the facts of the....