https://www.taxtmi.com/caselaws?id=783176 CESTAT set aside the demand of service tax on consideration paid for imported engineering drawings and designs, holding that the transaction constituted a permanent transfer of Intellectual Property Rights (IPR), not a taxable "design service". It further held that IPR service under the Finance Act, 1994 was not attracted as the foreign group entities, after permanent transfer, ceased to be IPR holders and the IPR in question was not recognized under any Indian law. Consequently, no service tax was payable. The Tribunal also rejected invocation of the extended limitation period and annulled penalties under Section 78, finding no evidence of fraud, collusion, or intent to evade tax. en-us Wed, 10 Dec 2025 00:00:00 +0530 Thu, 11 Dec 2025 08:55:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783176 CESTAT set aside the demand of service tax on consideration paid for imported engineering drawings and designs, holding that the transaction constituted a permanent transfer of Intellectual Property Rights (IPR), not a taxable "design service". It further held that IPR service under the Finance Act, 1994 was not attracted as the foreign group entities, after permanent transfer, ceased to be IPR holders and the IPR in question was not recognized under any Indian law. Consequently, no service tax was payable. The Tribunal also rejected invocation of the extended limitation period and annulled penalties under Section 78, finding no evidence of fraud, collusion, or intent to evade tax. Case-Laws Service Tax Wed, 10 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783176