TaxTMI 
TaxTMI 
2017 (7) TMI 1480
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....of the Finance Act. 2. The brief facts are that the appellant is a PSU and engaged in the manufacture and overhaul of various kinds of electronic items, which are used in the manufacture of aircraft, aircraft engine and its parts. They are registered under the taxable category of Management Maintenance or Repair Service" with the Service Department. 3. The appellant entered into an agreement with Federal-State Unitary Enterprise Rosoboronexport, Moscow, Russia in conformity with the Intergovernmental agreement between the Government of India and the Government of Russian Federation on the organisation of SU- 30 MKI aircraft licence production in India. The terms of agreement provided for transfer of technology in the form of technical doc....
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....8 of the Act and further penalty was imposed under Section 77 (1) (a) of the Finance Act, 1994 of Rs.200/- per day from the date of providing service till the date of taking registration under the head "Consulting Engineer Service". 5. Being aggrieved, the appellant /assessee is before this Tribunal. 6. The learned Counsel for the appellant states that the conditions precedent for invoking the extended period of limitation are not available and as such, the show cause notice is not maintainable. The elements for invoking the extended period like fraud, collusion, willful misstatement, suppression of facts or contravention of the provisions of the Act and the Rules being not available. The issue of show cause invoking extended period is ba....
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....try of Defence for its need. There is no element of business or commerce in the said transaction. It is further urged that transfer of technology under agreement should not be looked into isolation. The fees relating to technical assistance rendered while setting up a manufacturing plant, training of employees, etc. are to fulfil the main objective or intent of Technology Transfer. It is not a separate or distinct service. The ld. Counsel also relies on the ruling of this Tribunal on Nova Chemicals (International ) SA Vs. CCE, Kanpur - 2008 (11) STR 281, wherein this Tribunal has held that agreement for transfer of technology/know-how would not fall under the category of "Consulting Engineer Service", in spite of certain components of servi....
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....is further urged that transfer of right to use technology in the nature of undisclosed information is not patentable in India and hence not covered under the IPR services also. It is further urged that the levy of service tax under the impugned order under reverse charge is bad, as transfer of technologies is not used for business or commerce. It is further urged that transfer of technology and documentation is goods and not taxable to service tax. Further, under the facts and circumstances the transactions were duly recorded in the books of accounts maintained in the ordinary course of business and no case of any suppression, mala fide on the part of the appellants is made out, and as such, extended period of limitation is not invokable. A....
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....or a technocrat. It was further observed that this foreign-based company is a joint stock company, part of the 'Russian Technologies State Corporation', which is responsible for import/export of the full range of defence and dual use end products, technologies and services. It was also observed that the said company only has the right to supply the world market with a full range of arms and military equipments manufactured by the Russians Defence Industrial Complex and Approval. It was further observed that the official status of Rosoboronexport of Russia is an exclusive state intermediary agency and provides guaranteed state support for all export import operations. Thus, the said status of Rosoboronexport indicates that it is neither scie....