2011 (1) TMI 790

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....d prior to 18-4-2006 cannot be sustained. 2. The assessee is a wholly owned 100% subsidiary of Metro Cash and Carry, Germany, and operates cash and carry distribution centres in India. MCC, Germany is the management entity for ail cash and carry activities of Metro group worldwide. MCC, Germany is the proprietor of the trademark, service mark, brand name 'Metro'. MCC India, i.e., the assesses has entered into a License Agreement dated 4-10-2001 with MCC Germany wherein MCC Germany granted rights to use the trademarks and rights to use the proprietary know-how in managing cash and carry business in India. Under the terms of the agreement, the assessee is required to pay an annual royalty equal to an amount of 1% of the assessee's net....

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....06, the period is in question. Therefore, relying on the judgment of the Bombay High Court, which was affirmed by the Apex Court, the liability is only after 18-4-2006 and no liability could be foisted earlier to this period. Therefore, it set aside the impugned order, both the demands as well as the liability. Aggrieved by the said order of the tribunal, the revenue is in appeal. 4. The learned counsel for the revenue contended that the tribunal committed a serious error in not deciding the appeal on merits. It is an appeal preferred by an assessee. Therefore, the order impugned requires to be set aside and the matter is required to be remanded back to the tribunal for fresh consideration and for a decision on merits. It is only, t....