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2019 (11) TMI 1344 - CESTAT BANGALOREImport of services - Non-payment of service tax - Management Consultancy services availed from foreign service providers - Department also opined that the appellants have obtained technical knowhow from Foreign Service providers and were not paying applicable duty on technical knowhow and intellectual property service. Taxability before April 18, 2006 on Management Consultancy services - import of service - case of appellant is that import of services are taxable in India only with effect from April 18, 2006 i.e., the date on which Section 66A was inserted in the Finance Act - HELD THAT:- The appellant’s contentions, as far as the applicability of service tax on Management Consultancy Services received by them before 18.4.2006 are concerned, are acceptable - reliance can be placed in the judgment of the Hon’ble Bombay High Court in the case of Indian National Shipowners Association vs. UOI [2008 (12) TMI 41 - BOMBAY HIGH COURT] where it was held that Before insertion of section 66A with effect from 18-4-2006, there was no authority to levy service tax on Import of service - thus, no service tax can be fastened to the appellants before 18.4.2006. Accordingly, it is to be held that the appellants are liable to pay service tax of ₹ 48,76,268/- for the period April 2006 to March 2007 - decided against Revenue. Classification of services - technical knowhow received from their related foreign entity for the period 16th August 2002 to 31st March 2007 - demand of service tax, however, the demand on the same was under the heading “Consulting Engineering Services” for the period 16.8.2002 to 9.9.2004 for an amount of ₹ 92,74,747/- and under “Intellectual Property Services” for the period 10.9.2004 to 31.3.2007 - HELD THAT:- The payments are made for technical knowhow, training, etc., and not for the use of logo. Though, the use of logo is permitted in terms of the agreement unless a specific payment is made for the same, it cannot be said that the appellants have availed any trademark in terms of the service tax law - reliance placed in the case of ABB LTD VERSUS C.C.E. & S.T. -BANGALORE-LTU [2019 (1) TMI 1037 - CESTAT BANGALORE] where it was held that Know-how is not recognized as Intellectual Property law by any Indian Law for the time being in force. In fact know-how is the undisclosed information cited by the Department clarification dt. 10/09/2004 as example of intellectual property right not covered by any Indian law - appellants are not liable to pay service tax on ‘Consulting Engineering Services’ and ‘Intellectual Property Services’ as demanded by the department - penalty also set aside - decided against Revenue. Decided in favor of assessee.
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