2018 (10) TMI 405

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....nd also that the appeal pertains to 2009 and is very old. None appeared on behalf of the appellant despite notice. 2. Heard departmental representative and perused the records. We find that the case pertains to 2009 and the appeals filed during 2008, 2009 & 2010 are already being taken up for disposal at this stage. Therefore, we allow the early hearing application and examined the issue on merits. 3. The appellant herein entered into a memorandum of understanding with the Government of Andhra Pradesh to provide Israeli technology in the field of agriculture to help the state. The scope of their work has been laid down in Paras 1 to 1.7 of the agreement which reads as follows: "1. K-III Project K-III Project will be ....

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....h to receive the Israeli Technology. The BHC (India) will make available to the K-III Project the specified number of skilled persons, as mentioned in the Annexure-3, and required number of expertise man-years; 1.6 BHC (India) will give minimum commitment for marketing of the produce from the lands under the K-III project as per the schedule in Annexure-6; 1.7 BHC (India) will assist and participate in the further development of Agri Export Zones of Chittoor, which is already established under a separate arrangement." 4. Annexure 3 referred to in Para 1.5 above is based on the total amount payable for technology transfer, supervision, implementation and marketing support. Show cause notice dated 15.10.2007 was issued to....

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....of Andhra Pradesh is only a work order which is not chargeable to service tax. 5. The learned departmental representative reiterates the arguments made in the Order-in-Original and asserts that the nature of the services rendered by the appellant are scientific and technical consultancy and therefore, they are liable to pay service tax along with interest and are also liable for penalties for not discharging their service tax liability. 6. We have gone through the Order-in-Original, the Memorandum of Understanding entered into, the grounds of appeal and heard departmental representative's arguments. 7. The agreement is not a composite works contract as it does not involve supply of any materials by the appellant. This is in the nat....