TMI Blog2015 (11) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... o use technology by M/s Denso, Japan which was prior to the introduction of tax liability on such service. - Commissioner (Adjudication) Service Tax, Delhi in his order dated 28.02.2011, in para 3.6.2, categorically examined the legal position and concluded that the allegation in the show cause notice that the service was provided on continuous basis is incorrect. Only payment of service was spread over a period of time. The service was performed as soon as the technology was transferred. - Decided against Revenue. - Service Tax Appeal No. 880 of 2011, Service Tax Appeal No. 427 of 2012 - Final Order Nos. 53230 - 53231/ 2015 - Dated:- 16-10-2015 - Hon ble Mr. Justice G. Raghuram, President And Hon ble Mr. B. Ravichandran, Member (Techni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieved by this, M/s DHPL is before us in appeal. The second show cause notice was adjudicated by the Commissioner (Adjudication) Service Tax, New Delhi. He dropped the demand vide his order dated 28.02.2009. Aggrieved by this order the Revenue is in appeal before us. 2. Shri Ramesh Sharma, ld. Consultant appearing on behalf of M/s DHPL pleaded that on the same set of facts two different decisions have been arrived at by the departmental authorities. The ld. Commissioner in his order dated 28.02.2011 examined all the legal issues alongwith the terms of the contract and arrived at the decision that the service which is to be taxed w.e.f. 10.09.2004 was received by M/s DHPL much before the said date and as such they are not liable for servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rayed for upholding the same. 4. Ld. AR Shri Ranjan Khanna stated that the Commissioner has erred in dropping the demand. He submitted Articles 3 and 8 of the impugned agreement will indicate that though the agreement entered into is in 2002 there is a provision for revision of technology and provision to make available such revised technology to M/s DHPL. He contended that the party s plea that the transfer of technical know-how is completed as soon as the agreement is entered into is not correct. It is his view that as long as components are made using the said technology it should be considered that the service is continuing. Accordingly, he submitted that after the introduction of the service tax on IPR the party is liable for servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tangible goods the date of long term charter agreement will be relevant though the tangible goods were continued to be used even after the introduction of service tax liability on such service. The Tribunal held that the taxable event of supply of tangible goods for use has taken place prior to the introduction of tax on such service; and that though hire charges for the actual use were remitted subsequently and periodically, no service tax is leviable. 7. We find the facts and the legal analyses as made in the above two decisions are applicable to the present case. Here the agreement for grant of license or transfer / permission to use technology was effected before 10.09.2004. The fact that M/s DHPL continued to manufacture and sel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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