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2013 (9) TMI 471 - CESTAT MUMBAIService Tax on Royalty - Brand Name - Nature of Service - Intellectual Property Rights Services or Not - Revenue was of the view that the services rendered by Air India to AICL would come within the category of Intellectual Property Rights Services – Held that:- The Service Tax demand had been made on the whole amount of royalty without explaining how foregoing of rights or sharing of domain knowledge would come under the Intellectual Property Right Services - There was not even a whisper about the services rendered in this regard by the appellant to M/s AICL - Therefore, confirmation of demand on the entire amount of royalty received was not sustainable in law. As regards the question what should be the consideration for usage of brand name, there were methods available for doing this by expert in the field - The department does not seem to have utilized the services of expert in assessing the value of the brand and its usage - In the absence of such an assessment, it was difficult to sustain the impugned demand - The appellant themselves had amended their MOU retrospectively, wherein it had been provided that the royalty was payable only for foregoing their rights in operation in certain routes. Waiver of Pre-deposit – Pre-deposits were waived - The authority should have examined whether such retrospective amendment of the MOU was permissible or not - the appellant was a Government of India Undertaking and had been ailing for a long time - appeal allowed by way of remand - Stay Granted.
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