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2018 (1) TMI 1019 - AT - Service TaxDemand of service tax - certain fees/royalty paid by the assessee-Appellants to American Petroleum Institute, USA (API) for grant of certificate to their product, so that they can use their monogram ‘API’ on their final product - reverse charge mechanism - Held that: - Admittedly, the nature of service received by the assessee-Appellants are rightly covered under ‘Intellectual Property Right Service’. This is not seriously contested by the assessee-Appellants also. However, the tax liability confirmed under ‘Technical Testing & Certification Services’ cannot be sustained as the assessee-Appellants paid fees/royalty for use of ‘API’ monogram on their product as a sign of quality. The amount paid also categorised as fees/royalty - we uphold the tax liability on the assessee-Appellants on reverse charge basis on such consideration paid by them to the American Petroleum Institute, USA. The said service is taxable as Intellectual Property Rights (IPR). Time Limitation - Held that: - the first notice was issued on 08.01.2010 on the same activity and the second was issued on 22.11.2012, however, with a different classification - there is no justification invoking the extended period in the second show cause notice. Appeal allowed in part.
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