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2014 (8) TMI 96 - CESTAT MUMBAIDrawings and designs imported by the appellant - transfer of technical know-how - demand under the category of design service - The contention of the appellant is that the same transaction cannot be treated as supply of goods for the purpose of Customs duty and supply of services for the purposes of service tax liability - Held that:- the entire transaction was treated as supply of goods for the purpose of customs duty and if that be so, we do not understand how the very same transaction can be treated as supply of service and levy of service tax can be made on the entire value of transaction once again. - the entire transaction is one of transfer of technical know-how inasmuch as R&D cess under Section 3 of the R&D Cess Act has been paid and therefore the transaction does not merit to be treated as ‘design services'. Design services would come within the category of IPR inasmuch as the supply of the drawings and designs, the foreign entities have applied for patent and since the transfer is of permanent nature, it does not fall within the definition of IPR services as defined in the Finance Act, 1994. The appellant has declared the transaction to the concerned authorities at the relevant time and there is no suppression of any fact or withholding of any information from any of the authorities. - stay granted.
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