TaxTMI 
TaxTMI 
2015 (9) TMI 989
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....77 and 78 of the Finance Act, 1994. The aforesaid demands have been confirmed in respect of the 4 show cause notices and pertain to various services as under :- Issues on which demand raised Demand as per OIO dated 30-4-2013 Erection, Commissioning and installation services in respect of equipments supplied by the Company to its customers 48,72,77,071 Royalty income pertaining to licensing of technical information/ knowhow 13,380,774 Sales promotion and marketing services to UOP LLC (and other overseas companies) 1,56,606,912 Charges paid to the Company's overseas entities in respect of maintenance of software 1,011,943 2. As regards the demand under ECIS, the appellants contended that there are 38 agre....
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....egard there to. Ld. AR stated that on certain invoices sales-tax has not been charged and, therefore, it cannot be said that there was sale of goods. 3. As regards sales promotion and marketing services provided to UOPLLC (and other companies) amounting to Rs. 15,66,06,912/-, the ld. AR conceded that these are covered by the CESTAT judgement in the case of Paul Merchants Ltd. v. CCE, Chandigarh - 2012-TIOL-1877-CESTAT-Del = 2013 (29) S.T.R. 257 (Tri.-Del.) in view of which the impugned services would be deemed to be exported and hence, not liable to service tax. Regarding the royalty income pertaining to licensing of technical information/know-how, which has been covered under Intellectual Property Right Service, the appellants cont....
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....ty to extrapolate his findings based on the perusal of only 5 contracts to all the 38 contracts to demand service tax under ECIS on the entire value of all the 38 contracts is not legally sustainable. Indeed, the appellants were able to demonstrate that in one contract for example, excise duty was paid on the entire value thereof which clearly shows that at least some of the contracts may have been for the supply of goods. As regards the contention of the ld. AR that in some invoices sales-tax was not indicated, it is pertinent to mention that whether the transaction involved sale is to be determined on the basis of the nature of the transaction and not whether the sales-tax has been paid thereon or not. In other words,, merely because some....
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....n the territory, the preparation utilizing the know-how and scientific and technical information and the teachings of the patents on payment of royalty. It is also alleged in the show cause notice that the appellant was receiving know-how during the disputed period. However, from the agreement it is noticed that there is no evidence of continuous providing of information, know-how in relation to the manufacture. Further, it is not disputed that the appellant was manufacturing and selling products in the brand names, Pyricontin, Diacontin, Fecontin, Metocontin, Morcontin, Nitrocontin, and Unicontin which are claimed to be registered brand names of the appellant-company. In other words, they are not using the brand name of Mundipharma A.G. Sw....