JUDGMENT

Dr. AR. Lakshmanan, J.—This appeal is filed by the Commissioner of Customs (ICDs), Tughlakabad against the final order No. 1425/04-NB-A dated 20.12.2004 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi in Appeal No. C-396/04-NB/A by which the CESTAT has allowed the appeal filed by the respondent.

2. The brief facts leading to the filing of the present appeal are as under:

The respondent-Company i.e., M/s Prodelin India (P) Ltd. (for short "M/s PIPL") was set up under an agreement between M/s Prodelin Corporation U.S.A. (for short "M/s PC USA") and one Mr. Ashok Mago of New Delhi for marketing facility for promotion and selling VSAT Antennas, accessories and other communication equipments, assembly of equipments, testing, servicing etc.

As per the joint venture agreement M/s PC USA owns 75 of equity shares in M/s PIPL which shall assemble and test feed components provided by M/s PC USA and will service, test and install these products. Technical service fee was also to be paid by M/s PIPL to M/s PC USA for the period 1.10.1997 to 30.9.1998 @ US $ 25,000 per month in terms of technical service agreement between the two companies. A copy of the joint v