TaxTMI 
TaxTMI 
2026 (9) TMI 1378
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....the Respondent. ORDER PER: R. BHAGYA DEVI These three appeal Nos. ST/27427 & 27190/2013 are filed by M/s. ABB India Ltd. and Appeal No. ST/27296/2013 is filed by M/s. Volvo India Pvt. Ltd. Since the issue is common in all the three appeals the same are being disposed of by a common order. 2. Briefly the facts are that M/s. ABB India Ltd./ M/s. Volvo India Pvt. Ltd. were discharging service tax under Reverse Charge Mechanism (RCM) for the payments received towards technical know-how from their service providers located abroad. On scrutiny of the ST 3 returns, it was noticed that the appellants had not discharged service tax on the entire amount received by them. On verification, it was found that the appellants were availing the ....
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....e liable to pay R and D cess at the rate not exceeding 5% of the payments made towards the import of technology and this is to be paid on or before making payment to the foreign technology providers. Accordingly, they were remitting the applicable R and D cess before making the payment to the foreign companies. It is further submitted that while discharging service tax, the appellant is entitled for the abatement of R and D cess under Notification No.17/2004-ST dated 10.09.2004 which exempts service tax as is equivalent to the amount of R and D cess paid towards the import of technology under the provisions of Section 3 of the Research and Development Cess Act, 1986. It is his submission that w.e.f. 10.05.2008 Rule 6 of the Service Tax Rule....
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....dia Ltd. and January 2009 in the case of M/s. Volvo India Pvt. Ltd. To understand the issue, we need to examine the relevant provisions of the Notification No.17/2004-ST dated 10.09.2004 and the provisions of R and D Cess Act. The Research and Development Cess Act, 1986 Section 3: Levy and collection of cess on payments made towards import of technology: 1. They shall be levied and collected, for the purpose of this Act, a cess at such rate not exceeding five percent on all payments made towards the import of technology, as central government may, from time to time specify, by notification, in the Official Gazette. 2. The cess shall be payable to the central government by an industrial concern which impor....
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....nd that the appellants had paid R and D cess on 27.08.2009 while due date for service tax payment was 05.08.2009 and for the month of August 2009, R and D cess was paid on 15.09.2009 and due date for payment of service tax was 05.09.2009 which is acknowledged by the Commissioner in para 15.5.1 of the impugned order in appeal No. ST/27190/2013. Similarly, in Appeal No. ST/27427/2013, R and D cess for the month of June 2009 was paid on 14.07.2009, 27.07.2009 and 27.08.2009 and the service tax payment was on 05.07.2009 and 05.08.2009 as seen from the impugned order. In appeal No. ST/27296/2013 R and D cess was paid on 18.02.2009 while service tax was discharged on 06.02.2009 as per para 10.5.2 of the impugned order. In view of the fact that R ....