TaxTMI 
TaxTMI 
2013 (9) TMI 1158
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....ent, dated 13th Dec.'2004 (R&D Agreement) with Koninkhike Philips, Netherlands, who agreed to provide the applicant various services as specifically mentioned therein. 2. Since Sept.'04 to Jun.'05, the applicant paid Service Tax on the services provided by Philips, Netherlands under the category of "Intellectual Property Right Service" under Sections 65(55a) and 65(55b) of the Finance Act, 1994 and availed benefit of Exemption Notification No. 17/2004-S.T., dated 10-9-2004 insofar as exemption of tax to the extent of R&D Cess paid by them. 3. Subsequently, during the period July'05 to Sept.'07 on the same service they paid Service Tax under the category of "Management Consultancy Service" and also availed exemption under Not....
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....f products, which would come within the definition of IPR Service and since 10-9-2004 they paid Service Tax after adjusting R&D Cess, paid under R&D Cess Act, in terms of Notification No. 17/2004 (supra). 6.1 He submits that the dispute arose during the period Jul.'05 to Sept.'07. They inadvertently mentioned in their Service Tax Returns as "Management Consultancy Service" and availed benefit of Notification No. 17/2004 (supra). But from Oct.'07 onwards, they corrected the mistake in returns and mentioned as IPR Service. 6.2 It is submitted that without prejudice, prior to 1-5-2006 (i.e., amendment of definition of "Management Consultancy Service"), it defines the service in relation to management of any organization. In the....
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.... under IPR Service in order to avail exemption benefit. 8. After hearing both the sides and on perusal of records, we find that Notification No. 17/2004 (supra) allowed exemption in relation to IPR Service as is equivalent to the amount of cess paid towards the import technology, which reads as under :- "In exercise of the powers conferred by sub-section (1) of Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by the holder of Intellectual Property Right to any person, in relation to the "Intellectual Property Service", from so much of the Service Tax leviable thereon under Section 66 of ....
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....arket price can reasonably be established with reference to comparable situations in the market place; WHEREAS, it is further recognized that in view of the continuous flow of such information disseminated through the above mentioned research and development programmer, a system of separate payments would in any event be very difficult, if not impossible, to administer and would involve very costly and burdensome accounting procedure." 9.1 It is seen from Articles 2, 3, 4 of the R&D Agreement that Philips, Netherlands shall provide the applicant access to the benefits and information, existing and future, resulting from undertaking the research and development programmes of Philips, Netherland. The applicant shall be author....