Appellate Tribunal rules on service tax liability for Intellectual Property Services

The Appellate Tribunal CESTAT, Chennai ruled in favor of the assessees, holding that service tax liability for Intellectual Property Services received from abroad in India arises only from 18-4-2006. The demand and penalty imposed 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, stating that service tax liability for Intellectual Property Services received from abroad in India arises only from 18-4-2006. The demand and penalty imposed from 10-9-2004 to 31-3-2006 were held not sustainable. The assessees' appeal was allowed, and the revenue's appeal was dismissed. (Source: http://www.taxmanagementindia.com/visitor/detail_case_laws.aspRs.ID=78627)

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