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2018 (6) TMI 1160 - AT - Service TaxClassification of services - royalties pertaining to the sale of the final product - Intellectual Property Service or not? - Reverse Charge Mechanism - Held that:- Appellant had imported certain manufacturing equipment and the terms of agreement prescribed payment of some fees that were linked to sale of the output in India. Consequently, the classification of the service as ‘scientific and technical consultancy’ would appear to be inappropriate and should, have been, instead of ‘intellectual property service’ - The question of a reverse levy of tax on the recipient of the service under section 66A of the Finance Act, 1994 would arise only if the service itself is taxable and, in the absence of any reason to subject the said royalty to tax, the demand under section 66A would not survive. Appeal disposed off.
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