TaxTMI 
TaxTMI 
TaxTMI 
2018 (11) TMI 1157
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....d for printing industry. The appellants entered into an agreement with M/s.Agfa-Gevert NV, Belgium (Agfa in short) and Hydro Dynamics Products, UK for supply of technical know-how and they have paid royalty to the foreign entities in consideration thereof. The department opined that the appellants are liable to pay service tax on the aforesaid royalties under the taxable head of "Intellectual Property" service as defined under the Finance Act, 1994. Accordingly, periodical show-cause notices were issued proposing demand of service tax along with interest and imposed penalty. Demands were confirmed by the learned Commissioner and appeal filed by the appellants. This bench vide order No.A/1698-1701/13/CSTB/C-I dated 27/06/2013 has remanded th....
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.... though it is argued that foreign collaborators are providing intellectual property right services from outside India to the appellant, which ultimately gets subsumed in the drawings, manuals, etc. Therefore, the service tax cannot be demanded on them. There is no dispute or allegations by the department to the contrary that drawings, etc. have been supplied by the foreign collaborators in physical form. Hence, in result of the activity undertaken by the foreign collaborator is nothing but goods. The Hon'ble Supreme Court decision in the case of Associated Cement Companies Ltd. Vs. CC - 2001 (128) ELT 21 (SC) has held the same. The view was also affirmed by the Larger Bench of the Supreme Court in Tata Consultancy Services Vs. State of Andh....
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....) Chambal Fertilizers & Chemicals Ltd. - 2016 (45) STR 118 3.2 Learned Counsel further submitted that even assuming that the said technology is patented in India no service tax can be demanded on such transfer of right to use such intellectual property. Section 65 (55a) shows that the words used are "any right to intangible property ........under any law for the time being in force". Thus, it is submitted that it is not the intangible property, which should be recognized in India for levy of service tax on transfer of such right to use intellectual property. As the agreement has been entered prior to 10/09/2004, the same cannot be charged as intellectual property right service which introduced only on 10/09/2004. They relied upon the decis....
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....gn, product, process, technology, book, goodwill, etc. in India, legislations are made in respect of certain Intellectual Property Rights (i.e IPRs) such as patents, copyrights, trademarks and designs. The definition of taxable service includes only such IPRs (except copyright) that are prescribed under law for the time being in force. As the phrase law for the time being in force implies such laws as are applicable in India, IPRs covered under India Law in force at present alone are chargeable to service tax and IPRs like integrated circuits or undisclosed information (not covered by Indian law) would not be covered under taxable services. 9.2 A permanent transfer of intellectual property right does nt amount to rendering of service. On s....
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....ty Right Service as is apparent from the definition. He also stated that the Share Purchase Agreement never came into force and, therefore, it cannot be relied upon to say that royalty has been paid by the appellants to Rochem AG Switzerland for the use of the trademarks. In any case, according to him, the service in relation to Intellectual Property Right Service under Section 65(105)(zzr) can only be applied to Intellectual Property Right registered in India. The Ld. Counsel also contended that neither the show cause notice nor the impugned order set out the basis on which the services are sought to be classified under Intellectual Property Right Service and Revenue has mainly relied upon some clauses of the agreements. 5.3 We also find ....