IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL WEST ZONAL BENCH AT AHMEDABAD
M/s Shri Dinesh Mills Ltd. Vs CCE Vadodara
MR. P.G. CHACKO, MEMBER (JUDICIAL)
MR. B.S.V. MURTHY, MEMBER (TECHNICAL)
Date of Hearing : 14.10.2008
Date of Decision: 14.10.2008
ORDER No. /WZB/AHD/2008
Per: P.G. Chacko:
After examining the records and hearing both sides, we note that the short issue for consideration is whether service tax was leviable on the technical know-how fee paid by the appellant to foreign collaborator during the period 2002-2003 to 2003-2004, under the head Consulting Engineers service. The lower authorities demanded service tax in this category to the extent of Rs.1,88,041/- and imposed penalty. The issue is no longer res integra inasmuch as it stands settled against the Revenue by the Tribunals Larger Bench decision in the case of Hindustan Zinc Ltd. Vs. CCE Jaipur 2008-TIOL-1149-CESTAT-DEL-LB, wherein it has been held that any taxable service provided by non-resident or from outside India, who does not have office in India, is not exigible to service tax in the hands of the service-recipient in India prior to 1.1.2005. It is pertinent to note that, in the case considered by the Larger Bench, the demand was under the head Consulting Engineers service. Thus Larger Bench decision is squarely applicable to the facts of the present case.
2. In the result, the impugned order is set aside and this appeal is allowed.