Foreign Tech Transfer Not Subject to Service Tax: Karnataka HC Upholds Tribunal Decision

The Karnataka HC dismissed the revenue's appeal challenging a Tribunal order, affirming that service tax does not apply to a foreign company transferring technology to an Indian company. The decision was supported by a circular from the Central Board of Excise and Customs, as the Finance Act, 1994 does not cover foreign service providers in this scenario.

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The Karnataka High Court dismissed the revenue's appeal challenging a Tribunal order stating that service tax is not applicable when a foreign company transfers technology to an Indian company. The Central Board of Excise and Customs supported this view in a circular dated June 30, 2010. The Tribunal's decision was upheld as the Finance Act, 1994 does not apply to foreign service providers in such cases.

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