CESTAT Chennai: Service Tax on Intellectual Property Services from Abroad Applicable Since 18-4-2006

The Appellate Tribunal CESTAT, Chennai ruled in favor of the assessees, stating that the service tax liability on Intellectual Property Services from abroad only arises from 18-4-2006 onwards. The demand and penalty imposed for the period from 10-9-2004 to 31-3-2006 were deemed unsustainable. The assessees' appeal was allowed, and the revenue's appeal was dismissed.

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The Appellate Tribunal CESTAT, Chennai ruled in favor of the assessees regarding the service tax demand on Intellectual Property Services received from abroad, stating that the tax liability arises only from 18-4-2006 onwards. The demand and penalty imposed were not sustainable for the entire period from 10-9-2004 to 31-3-2006. The assessees' appeal was allowed, and the revenue's appeal was dismissed.

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