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2014 (7) TMI 752 - AT - Service TaxIntellectual property rights – transfer of technical knowhow for manufacture of automobile parts - payment of royalty each year – Held that:- This is a case involving transfer of technical knowhow for manufacture of automobile parts. The knowhow transferred was designs, engineering, data, manufacturing and process data, basic machinery and facility lay outs, testing and quality control data, production and testing equipment data including software, drawings, documents and materials relating to the products to be manufactured. So the knowhow by its very nature was not of a type which could be transferred on a continuous basis and was transferred as a onetime activity which happened in the year 2002. No proof that there was continuous transfer of technology during the relevant period namely, has been adduced by Revenue though Revenue is able to demonstrate continued payment of consideration for technology transferred based on the sales turnover of the goods manufactured using the technology already transferred. Whether tax is payable for consideration received after 10-09-2004 when the taxable event took place before 10-09-2004, the date when the activity became taxable – Held that:- Service tax being on the service rendered the liability has to be determined with reference to the time when activity took place and not with reference to the time when payment is taking place. This is the principle decided Tribunal in the case of Mundipharma Pvt. Ltd vs. CCE-[2009 (4) TMI 113 - CESTAT, NEW DELHI] with reference to the same service – Decided in favour of assessee.
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