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2009 (9) TMI 98 - AT - Service TaxAppellants herein who are manufacturers had entered into a Manufacturing Licensing Agreement with M/s. Delta Controls Ltd., England on 24-3-1997 for the right to manufacture and sell the licenced products to its customers - Department was of the view that Delta Controls had provided technical assistance to the appellants and are therefore liable to service tax under the category of ‘consulting engineer’s service’ - I agree with the assessees that under the Manufacturing Licensing agreement no technical assistance is provided to them by M/s. Delta Controls Ltd. It is only a case of payment of running royalty to Delta Controls and the payment of royalty comes into service tax net only with effect from 10-9-2004 as ‘intellectual property service’. The period in dispute being prior to the above date, the demand and penalty cannot be sustained.
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