TURBOTECH PRECISION ENGINEERING PVT. LTD. Vs. CCE, BANGALORE

JUDGEMENT

(1.) FOR the purpose of hearing the appeal, the appellants are required to pre -deposit Service tax amount of Rs. 23,58,008/ - and penalties of Rs. 500/ - under Section 75A, Rs. 2.5 lakhs under Section 76 and Rs. 1000/ - under Section 77 of the Finance Act, 1994. The appellants had rendered services like design development, design review, installation and commissioning and technology transfer for study and design of oil free compressor systems, etc. to their clients to the total billed value of Rs. 4,71,60,135/ - for the period from 7 -7 -1997 to 31 -3 -2001 prior to pertaining to their Registration Certificate for the services rendered to their clients in the category of a Scientific & Technical Consultant and a Consulting Engineer. Therefore the larger period has been invoked and demanded Service tax. The appellants contention is that the category of a Scientific and Technical Consultancy has come into effect from 16 -7 -2001 and the said category cannot be within the category of Consulting Engineers services and they relied on the Board Circular No. 51/13/2002, dated 7 -1 -2003. They also stated that their services alternatively falls under intellectual propriety right which came into existence on 10 -9 -2004. It was the contention of the appellants that in a similar matter, the Tribunal has been pleased to grant full waiver of pre -deposit of Service tax and penalty and stayed its recovery in the case of Araco Corporation v. Commissioner of Central Excise, Bangalore [2005 (180) E.L.T. 91 (Tri.)] (Stay Order No. 1085/2004, dated 21 -10 -2004) by accepting the plea raised by them and the appeal has been listed to be hearing on 7 -3 -2005. Learned Counsel produces a copy of the above stated order. He further relies on judgment rendered by the Tribunal, West Zonal Bench at Mumbai in case of M/s. Navinon Ltd. v. Commissioner of Central Excise, Mumbai -VI, reported in [2004 (172) E.L.T. 400 (Tribunal) = 2004 -TIOL -710 -CESTAT -Mum.]

(2.) HEARD learned SDR appearing for the Revenue who reiterates the Departments view.

(3.) ON a careful consideration of the submissions made by both the sides, we find that the Tribunal in the similar matter in case of M/s. Araco Automotive India (P) Ltd. has been pleased to grant full waiver of pre -deposit of Service tax and penalty and stayed its recovery in the matter by Stay Order No. 1085/2004, dated 21 -10 -2004. The Tribunal (Mumbai Bench) has also passed a Final Order in case of Navinon Ltd. (supra). Therefore the appellants have strong prima facie case in their favour and accordingly the stay application is allowed granting full waiver of pre -deposit of the disputed amounts and staying its recovery till the disposal of the appeal. The matter to come up for final hearing along with the similar matter already listed to be hearing on 7th March, 2005. There shall be no recovery till the disposal of the appeal. (Pronounced and dictated in the open Court)