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2015 (9) TMI 215 - AT - Service TaxDemand of service tax - Receipt of royalty - Held that:- both the lower authorities have erred in coming to a conclusion that appellant is liable to pay the service tax. if amount which is paid for as royalty and remains undisputed, the said amount of royalty cannot be covered under the Intellectual Property Service which came into tax net from 10.9.2004. It is seen from the records that the lower authorities have sought to recover the service tax liability from the appellant by invoking the provisional collection of tax to hold that service tax liability arises. In our view, this is incorrect, atleast, in respect of service tax liability, as in the case of service tax liability on any new services, it comes into effect only from the date which is notified by the Central Government by notification. - notification which was issued for taxing an amount paid as royalty under Intellectual Property Service was w.e.f. 10.9.2004. If that be so, service tax liability would not arise on the amount received by the appellant during the period 20.4.2004 to 10.9.2004. - impugned order is unsustainable and liable to be set aside - Decided in favour of assessee.
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