Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 309 - AT - Service TaxService tax liability - Intellectual Property Rights - whether the manufacturing/tie up based agreement entered into by the appellant-assessee with bottlers can be considered as agreement for payment of royalty by the bottlers to the appellant-assessee liable to service tax as held by the impugned order - Held that:- on careful perusal of the terms of both agreements, we find that there are substantial material differences and the tie up agreement cannot be considered for service tax liability under the category of royalty payment. We find that though the lower authority noted the contents of both Board's circular dated 27.10.2008 to the effect that tie up based agreements are not covered the IPR services for service tax, he proceeded to record that in the present case manufacturing agreement are essentially same as royalty based agreement except for difference of methodology used for calculation of royalty. We also find that the lower authorities fell in error in appreciating the provisions of the terms of contract vis-a-vis the position categorically clarified by the Board on 27.10.2008 and 30.10.2009. - No service tax liability - Decided in favour of appellant
|