Consulting Engineer

CESTAT, BANGALORE, BENCH

Commissioner of Central Excise

v.

Wintac Ltd.

DR. S.L.PEERAN, JUDICIAL MEMBER

AND T.K.JAYARAMAN, TECHNICAL MEMBER

FINAL ORDER NO. 1230 OF 2007

APPEAL NO. ST/79 OF 2005

OCTOBER 31, 2007

Section 65 of the Finance Act, 1994 - Consulting Engineer - Assessee was manufacturing and clearing pharmaceutical products under different brand names - It had transferred technical know how to a party for consideration - Revenue demanded service tax from assessee under category of ‘consulting engineer’ - Adjudicating authority confirmed said demand - Commissioner (Appeals) held that ownership of know how for products had been sold outright by assessee and it was one time transaction and, therefore, no question of rendering service and therefore such transaction would not be amounted to consulting engineering service - Whether Commissioner (Appeals) was justified in holding charge against assessee as unsubstantiated - Held, yes [para 4]

Section 65 of the Finance Act, 1994 - Clearing and forwarding agent - Whether where assessee was receiving commission for procuring and passing on export orders to some other company and had not handled goods, would not come within ambit of ‘clearing and forwarding agent’ - Held, yes

Section 65 of the Finance Act, 1994 - Scientific or technical consultancy service - Assessee was engaged in manufacture of pharmaceutical products - It had rendered certain services to labs - Service tax was demanded from assessee under category of scientific or technical consultancy service - However, revenue had not established as to how the rendering of services to labs would come within category of ‘Scientific or Technical Consultancy Services’ - Whether Commissioner (Appeals) was justified in holding charge as unsubstantiated - Held, yes [Para 4]