2018 (8) TMI 773

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.... of packing, repacking, labeling, re-labeling of spare components and assemblies of Hydraulic Excavators for the period in dispute from 29/04/2010 to 30/06/2011. Further, another issue is, whether the appellant is liable to pay service tax under 'Consulting Engineer's Services', 'Intellectual Property Services' and 'Repair & Maintenance Services' and also whether penalties have been rightly imposed under Section 77 and 78 of the Act and also under Section 11AC of the Act read with Rule 25 of CER 2002. 2. The brief facts of the case are that, the appellant, Kobelco Construction Equipment India Pvt. Ltd., is engaged in packing, repacking, labeling and relabeling of spare parts, components and assemblies of Hydraulic Excavators classifi....

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....ise Tariff Act, 1985. 4. Subsequently, the Parliament noticed the defect in drafting and the mistake committed in the Amendment made in the Finance Act, 2011 and the said error was rectified vide Finance Act, 2012, which received the assent on 28^th May, 2012, wherein, the Finance Act, 2011 was amended so as to read the words "the third Schedule to the Central Excise Tariff Act" with the words "the third Schedule to the Central Excise Act, 1944". 5. Further, the case of the appellant is that, there was an inspection in their premises at Noida on 30^th June 2011 wherein they were doing packing, repacking etc., and on being so pointed out by the Revenue Authority that this activity relating to the parts of excavator falling under chapte....

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...., deposited an amount of Rs. 25,22,436/- along with interest of Rs. 52,246/- towards technical support fee and further Rs. 6,70,439/- along with interest of Rs. 8,226/- words service received for royalty - intellectual property service. These amounts had, admittedly, been paid before the issuance of SCN as the SCN contains proposal to appropriate these amounts. So far as demand for services rendered towards maintenance or repair services, the learned counsel points out that the said services have been provided to the Japanese Company under the Warranty Reimbursement Agreement and hence amounts to export of service under the Export of Service Rules, for which they have received payment in inconvertible foreign exchange. However, on being so ....