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2013 (10) TMI 965 - AT - Service TaxImport of services - payment of royalty in installments - levy of service tax pre and post 18.4.2006 - Held that:- Applicant had paid the license fees for using the software supplied/sold by the overseas supplier. It is also not in dispute that the license fees were required to be paid in ten installments to the overseas supplier. We find force in the arguments of the ld. Advocate for the Applicant that the installments paid prior to 18.04.2006 cannot be subjected to service tax under the reverse mechanism in view of the decision of the Hon’ble Bombay High Court in Indian National Shipowners Associations (2008 (12) TMI 41 - HIGH COURT OF BOMBAY), which has been upheld by the Hon’ble Supreme Court. Accordingly, predeposit of dues relating to ST Appeal No.250/11 is waived and its recovery stayed during the pendency of Appeal. Prima facie, we agree with the ld. Special Counsel for the Revenue that the installments paid after 18.04.2006 could be subjected to levy of service tax under Intellectual Property Rights. Thus, the Applicant could not able to make out a prima facie case for the installments paid after 18.04.2006. In these circumstances, keeping in view the interest of the revenue and the principle of laws settled in disposal of stay petition by the Hon’ble High Court and the Hon’ble Supreme Court, we direct the Applicant to deposit the entire amount of Service Tax of Rs.90,86,338 within a period of twelve weeks from today, and on deposit of the said amount, the balance dues adjudged would stand waived and its recovery stayed during pendency of the Appeals. Failure to deposit the said amount would result into dismissal of the said Appeal without further notice to the Applicant - stay granted partly.
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