TaxTMI 
TaxTMI 
TaxTMI 
2024 (3) TMI 131
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....entral Excise & Service Tax Appellate Tribunal, West Zonal Bench, Ahmedabad (for short 'the Tribunal') in Service Tax Appeal No. 10579 of 2013-DB. (a) Whether the Hon'ble Tribunal does or does not explicitly address/ verify whether the Intellectual Property Rights (IRPs) have been permanently transferred and the seller ceased to be the "Holder of Intellectual Property Right" for a permanent transfer to have taken place in view of the language used in the Supplemental Agreement dated 14.12.2005 at Paragraph 13.2, which outlines warranties and representations regarding the Polymer Business, states that the seller possesses the means, rights, and information necessary to conduct the polymer business without incurring liabilities for license ....
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....al valuation of the company whereas, as per the valuation report of M/s. Gharda Chemicals Limited, it appeared that the entire polymer division along with the services associated with for operation of plant and maintenance of quality of polymers was sold for a lump sum price and there was no bifurcation of value of service as well as assets thereof as per the sale and purchase agreement dated 09th May, 2006. 2.3 A supplemental agreement was also entered into between both the parties contain Schedule I to XII along with Annexures-A and B. The appellant, on scrutiny of Schedule IV, observed that products at Serial Nos. 1 to 3 were registered patents and Serial No. 4 was a patent already applied and Serial No. 5 was the patent being applied f....
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....espondent as well as the appellant and on perusal of the record, provisions of Section 65(92) of the Finance Act which defines scientific or technical consultancy as well as definition of the intellectual property right services as defined under Section 65(55b) of the Finance Act and considering the definition of slump sale as per Section 2(42C) of the Income Tax Act, 1961, came to the conclusion that transfer including the transfer of technical know-how and patent etc. are in pursuance of the slump sale and not by way of providing the services and allowed the appeal of the respondent herein. 3. Learned advocate Mr. Utkarsh Sharma for the appellant vehemently submitted that the Tribunal did not consider the aspect of sale as per Section 2(....
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....t during the course of investigation prior to issuance of the show-cause notice wherein it is made clear that the respondent has transferred the entire polymer division as a slump sale to SIPPL and accordingly the Tribunal has rightly observed after analysing the provisions of Section 65 pertaining to the definition of scientific or technical consultancy under Section 65(92) and intellectual property service as per Section 65(55b) of the Finance Act, 1994 read with the definition of slump sale as per Section 2(42C) of the Income Tax Act, 1961 has rightly held that in case of slump sale, there is no question of providing intellectual property service or scientific or technical consultancy as alleged by the appellant. The Tribunal has held as....
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....gned show cause notice alleged that transfer 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 re....