2023 (4) TMI 439

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sis for a lump sum consideration of Rs. 169,34,95,385/-. During the course of scrutiny of agreement, it appeared that they entered into agreement for transfer of all propriety invention, design, idea process, methods, right of Patent and other technical know-how in terms of sale and purchase agreement 14.12.2005. During the course of scrutiny of documents/ records submitted by the M/s SSIPL it was also observed that Polymer Division of Appellant was completely transferred to M/s SSIPL on 9th May, 2006 on a consideration of Rs. 1,69,34,95,385/- Further the valuation report 28.02.2006 issued by the M/s Anmol Sekhri & Associates showed the value of Goodwill/ Brand, patent & technical know-how and other assets reflected the total valuation of t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ection 73 of the Finance Act, 1994 along with interest on the taxable value of Rs. 34,39,51,700/- received against the transfer of patent and technical know-how and the penal provisions as provided under Section 76, 77 and 78 of the Finance Act, 1994 have also been invoked in the show cause notice. The matter came to be adjudicated by the Learned Commissioner, who vide his impugned Order-In-Original No. 25/ST/Commr./Surat-II/2012 dated 17.12.2012 confirmed the demand made in the show cause notice. The appellant is before us against the aforesaid impugned order-in-original. 3. Shri Niraj Bagri, learned Counsel for the appellant submits that as per the definition of scientific or technical consultancy services the service tax liability arise....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the which was duly available with the Jurisdictional excise authorities when excise audit for the relevant period was done. Hence the facts were known to the department that appellant had sold its polymer division as going concern. Hence, proviso to Section 73(1) of Finance Act, 1994 is not applicable to the assessee. 6. Without admitting the service tax liability, he also submits that Ld. Commissioner has erred in demanding the Service tax on the value of Rs. 34,39,51,700/-. The amount received by the appellant must be treated a cum-duty value. 7. We have also heard Learned Departmental Representative Shri Tara Prakash, Deputy Commissioner (AR) who has supported the findings recorded in the order-in-original. 8. From the argument mad....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fer activity of its Polymer Division to M/s SSIPL is covered under the service category of „Intellectual Property Service‟ and transfer activity of technical know-how provided by the unit during transfer of its Polymer Division to M/s SSIPL is covered under the service category of „Scientific & Technical Consultancy Service; which are taxable service with effect from 10.09.2004 and 16.07.2001 respectively. However from the definition of „scientific or technical consultancy service‟ we find that there should be an advice, consultancy, or scientific or technical assistant given by person or an institution to another person. In the present matter it has not been brought out by the revenue as to what advice, consul....