BST LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE, COCHIN

JUDGEMENT

(1.) THE stay and appeal have been filed against Order -in -Appeal No. 1/2005 -ST, dated 21 -9 -2005 passed by the Commissioner of Customs and Central Excise, Cochin.

(2.) THE appellants are manufacturers of audio systems. They were having Technical Assistance Agreement with the foreign collaborator M/s. Sanyo Technosound Co. Ltd. According to the terms of agreement, the appellants are required to pay royalty for the technical know -how received from the foreign collaborator. The Revenue proceeded against the appellant on the ground that the foreign collaborator are rendering the services of consulting engineer, which is liable to Service tax under proviso to Rule 6 (1) of Service Tax Rules, 1994. During the relevant period, the receiver of the services or an authorised agent of the foreign collaborator is supposed to discharge the service tax liability. The lower authority has confirmed the demand of Rs. 3,48,213/ - for the period from 6 -10 -2000 to 21 -5 -2001 and various penalties under Sections 76, 77 and 78 have been imposed on the appellants.

(3.) SMT . Rukmani Menon, Advocate appeared for appellant and Shri K. S. Reddy, JDR for the Revenue.