2008 (4) TMI 260

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....rian Joseph, Advocate, for the Respondent. [Order]. - This is an appeal filed by the Revenue. In the impugned order, the Commissioner (Appeals) vacated the order of the Dy. Commissioner which confirmed a demand of Rs. 9,91,137/- towards service tax from the respondents and imposed penalties on them under various sections of Finance Act, 1994 (the Act) including an amount of Rs. 17,35,000/- unde....

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....i using the technology and know-how owned by Arai. He found that Arai had provided technology in exchange for a lump sum amount and royalty at the rate of 5% of the ex-factory price of the licensed product. The Commissioner (A) found that in Navinon Limited v. CCE [2006 (3) S.T.R. 397 (T) = 2004 (172) E.L.T. 400 (Tribunal) = 2004 TIOL 710 - CESTAT-MUM] Tribunal in a similar case had ordered that t....

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....vehicle components, supplied technical know-how to Hitech Arai against payment of royalty. In the following decisions of the Tribunal cited by the ld. Counsel for the respondents, the Tribunal held that royalty payment for the use of the technology and know-how cannot be subjected to service tax as Engineering Consultancy. (a) Navinon Ltd. v. CCE, Mumbai-VI - 2006 (3) S.T.R. 397 (T) = 2004 (172....