2020 (5) TMI 522

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....gines and parts; they are registered under the taxable service category of 'Management Maintenance or Repair Service. The appellants have entered into an agreement with Rolls Royce Turbomeca Limited, U.K. as part of Inter-governmental agreement between Govt. of India and Govt. of United Kingdom. In accordance with the contract, the appellants have made payments towards the transfer of technology, design, drawing, technical know-how, intangible assets etc. to the overseas company. Alleging that the payments made by the appellants to the overseas entity are in respect of a service received by them under the head "Intellectual Property Rights" the Department has issued show-cause notice dated 19/10/2010 to the appellant covering the period 200....

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....nsel for the appellant submits that in respect of their Nashik unit for the same contract in the said Sukoyi, demand was raised under 'Scientific and Technical Consultancy Services'. Mumbai Bench of this Tribunal relying on their earlier case in respect of the appellants' themselves - 2015 (40) S.T.R. 289 (Mum.) have held that the services received by the appellants do not come under the purview of 'Scientific and technical Consultancy Services'. Learned counsel further submits that Board of Excise and Customs vide Circular 80/2004-ST dated 17/09/2004 have categorically clarified it from para No. 9.1 as follows: "Intellectual property emerges from 9.1 application of intellect, which may be in the form of an invention, design, produ....

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....rtment has viewed the services received in a different manner at different places while it has been viewed as Consulting Engineer Services in respect of the units in U.K it was viewed as Scientific and Technical Consultancy Services in respect of the unit at Nashik and in the instant appeal, the Department seeks to categorize the services as Intellectual Property Rights Services. On going through the agreement and Board's circular issued in this regard, it is clear that there is a certain transfer of know-how involved it is not coming from the records of the case that such technical know-how, design, copy right etc have been patented in India in view of the clarification given by the Board unless such technical know-how etc are listed under....