TATA TECHNOLOGIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE applicants are engaged in the activity of providing consultant engineering service to M/s. Tata Johnson Controls Automotive Ltd. which is engaged in exporting engineering and designing service to their service recipients located outside India and getting the remuneration in convertible foreign exchange.

(2.) M/s. Tata Johnson Controls Automotive Ltd. subcontracted part of the service exported to the applicant and applicant executed those services to M/s. Tata Johnson Controls Automotive Ltd. Department is of the view that the service provided by the applicant to M/s. Tata Johnson Controls Automotive Ltd. are not received in convertible foreign exchange and therefore, are liable to service tax and accordingly, show -cause notice were issued and demands were confirmed along with interest and various penalties under the Finance Act. Heard both sides. It is contended on behalf of the applicant that the applicant are entitled for the benefit of Circular No. /5/2003 -S.T., dated 25 -4 -2003. Therefore they are not liable to service tax on the service rendered to M/s. Tata Johnson Controls Automotive Ltd. We have gone through the Circular No. /5/2003 -S.T., dated 25 -4 -2003. Para 4 of the said circular is reproduced as under: -