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2014 (4) TMI 955 - CESTAT NEW DELHIDemand of service tax - import of services - Technical Know how service - Held that:- The service tax is sought to be demanded on the amount being paid by the appellant to BPB, UK in terms of Article 8.2 of their agreement with them. While in terms of the Article 8.1 of the Agreement, the appellant were required to pay a lump sum amount of ₹ 400000 as consideration for technical knowhow provided, within a specified period and the same amount has already been paid, Article 8.2. provides for recurring annual payment @3% of the annual sales turnover for technical services provided by M/s. BPB to the appellant. The technical services being provided are those mentioned in Annexure-II to the agreement, which are expert advice and assistance with identification specification and preparation of linerboard (paper) gypsum and other indigenous raw materials to be used by the appellant in India, the expert advice and assistance during installation, erection and commissioning of the plant and also in the subsequent modifications or addition to the manufacturing plant, expert advice and assistance with the manufacture of the products and jointing compounds and joint filler including occasional supervision and problem solving, expert assistance in marketing of the final products etc. None of these services can be called intellectual property service. demand for the period prior to 18.4.2006 is not sustainable in view of the judgement of Hon’ble Bombay High Court in the case of Indian National Ship-owners Association [2008 (12) TMI 41 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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