2008 (4) TMI 260

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....ndent. [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/- under Section 78 of the Act. The original ....

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....d 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 the amount received for disclosure of tec....

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....w 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) E.L.T. 400 (Tri.-Mumbai) (b) CCE, Bangalore v....