2018 (12) TMI 501

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....: Ramesh Nair The brief facts of the case are that the appellant had received technical designs and drawings of locks from two foreign companies in China and Hongkong on payment of total amount of Rs. 20,62,114/- during the period 2004-05 to 2006-07. The case of the department is that this supply of drawings was in the nature of providing Intellectual Property Service by the foreign suppliers wh....

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....d designs does not fall under the definition of Intellectual Property Right Service for the reason that these drawings and designs were outrightly purchased by the appellant from the foreign suppliers. As per the definition existing at the relevant time, Intellectual Property Rights means temporary transfer or temporary use of the right of Intellectual Property. In the case of outright sale, it do....

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....roperty rights, we find that only in a case where property rights is temporarily transferred on even for use on a temporary basis, can only be classified under the Intellectual Property Rights Services in the Finance Act, 1994. In the present case, there is a claim of the appellant that there is transaction of outright sale of drawing. In support, he submitted certificate from the foreign supplier....