COMMISSIONER OF S.T., BANGALORE Vs. WINTAC LTD.

JUDGEMENT

(1.) THIS is a Revenue appeal arising from Order -in -Appeal No. 63/2005 -C.E., dated 27 -7 -2005 setting aside the Order -in -Original No. 38/2005 -(ST) dated 24 -3 -2005. The appellant was manufacturing and clearing pharmaceutical products under different brand names. They were issued with a show cause notice dated 1 -3 -2004 by Assistant Commissioner of Central Excise raising huge demands of Rs. 1.25 crores under the category of Consulting Engineer Service, Rs. 2,86,116/ - under the Clearing and Forwarding Agents and Rs. 21,900/ - under the category of Scientific or Technical Consultancy Service. The assessee had an agreement with M/s. Recon Health Care Ltd., for commercial sale of trade marks or brand names owned by the assessee for commercial consideration. They have also entered into an agreement for transfer of technical know -how, according to which the assessee sold the technical know -how for a consideration to the said party. Revenue considered this receipt of commercial consideration for transfer of technical know -how to come under the category of Consulting Engineers.

(2.) REVENUE also alleged that assessee was carrying on the activity of Clearing and Forwarding Agent services to M/s. Rallis India Ltd. and M/s. Criticare Laboratories and they were carrying on services of scientific or technical consultancy services to M/s. Hikal Ltd. The appellant contended that the activity of transfer of technological know -how does not come under the category of Scientific or Technical Consultancy Services and relied on several rulings rendered by the Apex Court and the Tribunal. The rulings relied on are :

(3.) THE learned JDR reiterated the grounds made out in the appeal memo. While the learned Counsel submitted that the Tribunal has upheld the plea that transfer of technology would not come within the ambit of Consulting Engineering Services as held in the following case -laws :