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2017 (5) TMI 467 - AT - Service TaxIPR services - agreement with DSL for granting an exclusive non-transferable and non-assignable right, to use licenced information to manufacture, sell, distribute and market their products - Revenue entertained a view that the appellants provided intellectual property right service in terms of Section 65 (105) (zzr) readwith Section 65 (55a) and Section 65 (55b) of the FA, 1994 - whether the appellant transferred any intellectual property right to DSL, for a consideration? - Held that: - It is clear that to be a taxable IPR under Finance Act, 1994, the same should be a right to intangible property namely trade marks, design, patent etc. under any law for the time being in force. It is clear and apparent that a right which is not recognized by any law for the time being in force in India cannot be brought under IPR for tax liability. The design or technical knowhow has to be first covered under an Indian law on the subject of intellectual property right, so that corresponding taxable service can be brought into picture. The amounts received by the appellant in terms of technical assistance agreements cannot be subjected to service tax under the category of IPR service - appeal allowed - decided in favor of appellant.
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