TMI Blog2012 (5) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... o the manufacture of certain automobile parts. They did so under licence agreement dt. 31/1/1997 executed between them and the foreign company. Under this agreement, the appellant was liable to pay royalty to the supplier of technical knowhow as a percentage of total sales (including exports) of the products. They also paid service tax on such royalty for the year 2006 and also took CENVAT credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontested. The original authority upheld the said demands / proposals and imposed penalty of RS.4,79,115/- on the assessee. Its order was upheld by the Commissioner (Appeals). The appellate Commissioner's order is under challenge in the present appeal of the assessee. 2. After examining the records and hearing both sides, I find that, though, in the show-cause notice, the case of the Revenue was t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the audit report has not been brought on record. Where the assessee sought to establish that the importation of technical knowhow constituted input service in the form of 'intellectual property service' for the purpose of CENVAT credit, it was incumbent on them to produce a copy of the licence agreement before the original authority. Whether the service had any nexus with the manufacture of aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the licence agreement. I am of the view that the original authority should undertake this exercise in accordance with law and should render a correct decision on the substantive and other issues (including limitation) after giving the assessee a reasonable opportunity of adducing evidence and of being heard. The appeal stands allowed by way of remand. (Pronounced and dictated in open court) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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