Hindustan Aeronautics Ltd. v. CCE
Finance Act, 1994
--Consulting Engineer Service--Transfer of technologyTaxability under reverse charge mechanism----Where the payment made by assessee-company was for transfer of technology under Inter-Governmental agreement and not for receipt of any services in India in relation to business or commerce, the same would not be leviable to tax under the head 'Consulting Engineer Services' on reverse charge basis. --Assessee-PSU was engaged in manufacture and overhaul of various kinds of electronic items, which were used in manufacture of aircraft, aircraft engine and its parts. Revenue alleged that assessee was liable to discharge service tax on reverse charge basis under the category of Consulting Engineering Services for payment made for transfer of technology and technical assistance fees. Assessee contended that such payment was made in pursuance to the Inter-Governmental Agreement (IGA) as per the direction of the Ministry of Defence and there was no element of business or commerce in the said transaction. Held: Payment made by assessee-company was for transfer of technology under Inter-Governmental agreement and not for receipt of any services in India in relation to business or commerce. Further, as there was no relation of any Consulting Engineering Service with any client or assessee, payment of service tax would not be attracted under the head 'Consulting Engineer Services' on reverse charge basis.
Finance Act, 1994 Section 65(31)
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE CESTAT, REGIONAL, ALLAHABAD BENCH
ANIL CHOUDHARY, MEMBER (J) & ANIL G. SHAKKARWAR, MEMBER (T)
Hindustan Aeronautics Ltd. v. CCE
Order No. ST/A/71843/2018-CU(DB)/ALL
Appeal No. ST/1817/20U-CIKDB)/ALL
2 August, 2018
Cases Cited
Commissioner v. Hindustan Aeronautics Ltd. 2015 (40) S.T.R. 289 (Tribunal)--Referred
Nova Chemicals (International) v. Commissioner 2008 (11) S.T.R. 281 (Tribunal)--Referred