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2018 (11) TMI 1382 - AT - Service TaxClassification of services - appellant desires to acquire license to manufacture products manufactured with the use of Timken (USA)’s proprietary technical information and to service the products by using Timken (USA)’s proprietary technical information - classified under Franchisee service or under intellectual property service - Time Limitation - Held that:- The agreement between the appellant and the Timken (USA) is not limited to use Timken’s Intellectual Property i.e. proprietary technical information, knowhow etc. for manufacture of products and for service of the main products as is defined in the intellectual property service. Rather the various terms of the contract as given above indicate that the appellant has to represent the Timken (USA) to their various customers in such a way that the appellant looses its own individual identity and would perhaps be known only by the identity of Timken (USA). The services availed by the appellant are more akin to franchise services rather than intellectual property right service - the services availed by the appellant are franchise services and they need to pay service tax as applicable on the same. Time limitation - Held that:- As the assessee is working in the era of self-assessment and therefore the responsibility lies with them to classify the service availed/provided by them correctly and if any confusion or difficulty they are certainly free to approach the revenue authorities for necessary clarifications - the extended time proviso for demanding service tax has rightly been involved in their case. Appeal dismissed - decided against appellant.
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