2016 (7) TMI 559 - AT - Service Tax

Intellectual Property Service (IPR) - IPRs covered under Indian Law in force - import of services - taxability - extended period of limitation - appellants entered into License Agreement with foreign companies and obtained rights to use the technology for manufacture in consideration of which they had paid technical know-how fees and royalty charges - period from 01.01.2006 to 31.12.2006 - The appellants state that these foreign companies transferred licensed use of their technical information, know-how and trade secrets which are not registered under any Indian law for time being in force. - Scope of Section 65(55a) of Finance Act, 1994.

Held that:- the subject matter(s) of transfer of various documents/drawings, designs, softwares, catalogues, technical assistance/training documents/symbol numbering system etc., done under respective agreements which are on the record of these proceedings are not covered under the definition of the subject matter(s) of transfer of various documents/drawings, designs, softwares, catalogues, technical assistance/training documents/symbol numbering system etc., done under respective agreements which are on the record of these proceedings are not covered under the definition of 'Intellectual Property Right' as given in Section 65(55a) of Finance Act 1994 and consequently subject transfers of 'right to intellectual property', if any, covered by those transactions do not come within the definition of 'Intellectual Property Service' given in Section 65(55b) of the Finance Act, 1994 and the service(s) if any, provided by the foreign companies by way of transfer of subject matter(s) under respective agreements to the appellants cannot be covered under the taxable service of 'Intellectual Property Service' as defined under Section 65(105)(zzr) of the Finance Act, 1994 'Intellectual Property Right' as given in Section 65(55a) of Finance Act 1994 and consequently subject transfers of 'right to intellectual property', if any, covered by those transactions do not come within the definition of 'Intellectual Property Service' given in Section 65(55b) of the Finance Act, 1994 and the service(s) if any, provided by the foreign companies by way of transfer of subject matter(s) under respective agreements to the appellants cannot be covered under the taxable service of 'Intellectual Property Service' as defined under Section 65(105)(zzr) of the Finance Act, 1994.

Demand set aside - Decided iin favor of assessee.