ROBERT BOSCH Vs. CCE

JUDGEMENT

(1.) THIS appeal is filed by M/s. Robert Bosch, S.A., Spain, against an order of the Commissioner (Appeals). In the impugned order, the Commissioner (Appeals) sustained an order of the original authority demanding service tax from the appellants to the extent of Rs. 1,81,891/ - and imposed penalty of Rs. 1000/ - on the appellants under Section 77 of the Finance Act, 1994 (the Act). He reduced the penalty imposed under Section 76 by half of what was imposed by the original authority.

(2.) THE facts of the case in brief are that M/s. Robert Bosch, had received an amount of Rs. 36,37,821/ - on 03.09.99 as lump sum payment under an agreement they had entered into with M/s. Roots Industries Limited, (RIL) Coimbatore, in exchange for transfer of technical know -how and grant of license to RIL to manufacture automobile horns. After due process of law, a show cause notice issued in 2004 was disposed by the original authority demanding service tax under the category 'Consulting Engineer's Service' from the appellants on the finding that transfer of technical know -how involved rendering of engineering consultation.

(3.) REITERATING the grounds in the appeal, the Ld. Counsel submits that by a line of decisions, it has been settled that transfer of technical know -how is not a service taxable under the category of consulting engineer. He furnishes copies of the following decisions which support his argument.