2020 (9) TMI 258

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....ring application have been filed by the appellant on the ground that the issue was squarely decided in their favour for the earlier period by this bench as reported in 2019 (25) GSTL 230 (Tri-Hyd). Allowing the early hearing applications, with the consent of both the parties, we, therefore, proceed to decide the appeals on merits. 2. Learned counsel for the appellant submits that the earlier order of this bench covered the period 2004-05 up to March, 2012. The present appeals covered the period April, 2012 to March, 2015. Subsequent demand covering the period April, 2015 to June, 2017 has already been decided by the Commissioner (Appeals) in their favour following the ratio of the earlier order passed by this bench. Therefore, only the p....

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.... The question is whether the amount which has been received by the appellant from M/s Aventis qualifies to be called a "Scientific or Technical Consultancy service" and if so, whether service tax can be levied on such amounts. This issue was decided in favour of the assessee and it was held that while the nature of service is 'scientific or technical consultancy service', the service which when rendered qualifies to be called as export of services and therefore, no service tax is chargeable on such service. In these three appeals, there is no demand on this head at all. 4. The second source of income for the appellant is, after the seeds are developed and patented by M/s Aventis, they provide the seeds to the appellant who get them multi....

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....ing for necessary patents. He also provides guidance to the appellant on conducting the research. Under these circumstances, we find that the appellant is only rendering scientific and technical consultancy services. We also find no force in the argument of the appellant that they are not a scientific or technical research institution or an organisation. They are definitely an organisation engaged in doing scientific research. Scientific research is not confined to fundamental research but can also be applied research. Learned counsel also tried to impress upon us that plant breeding is not science which we find without any force. If plant breeding is not a science at all then nothing in the modern agriculture which resulted in green revolu....

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....ies developed in India and the services provided by the assessee will be utilized in India. He reasoned that the services rendered by the assessee do not qualify as export of services. We do not agree with this view. The scientific and technical consultancy services provided to their overseas client is one leg of transaction which ends when the reports are delivered to their client in Germany. The service tax proposed to be charged is on this leg of transaction. After having received the reports the clients in Germany files applications for and obtains IPR and thereafter the second phase of the activity viz., multiplication of the seeds developed and their sale in India begins. The service in question is not relatable to the second phase of....