TMI Blog2016 (12) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... that is enforceable against all others, and not just against the recipient of the service. The right that is transferred is the technical know-how which may be a service but is not in relation to intellectual property service which pertains to intellectual property rights. In the case of ELGI Rubber Products Ltd. [2010 (2) TMI 305 - CESTAT, BANGALORE], the Tribunal was called upon to decide the legality of demand on 'reverse charge basis' on receipt of a service that was volunteered by the recipient as 'intellectual property service' which Revenue sought to tax under a different entry. The ingredients that render the service taxable under section 65(105)(zzr) was not subject to scrutiny by the Tribunal and a reference to technical kn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordance with agreement permitting the latter to use the technology and documentation belonging to the former to for production and marketing of 1,2-methylenedioxybenzene. 2. The first appellate authority considered the definition of taxable service supra, the definition of intellectual property right in Section 65(55a) and of intellectual property service in Section 65(55b) of Finance Act, 1994, both being essential ingredients of the taxable service on the one hand and the agreement between the transferor and transferee of technical know-how on the other to conclude that the amounts constitute consideration for rendering taxable service. 3. Learned Counsel for appellant admits that the appellant is the owner of the know-how a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able service that the liability will arise in relation to intellectual property service provided by the holder of intellectual property right. This right is defined as any right to intangible property, namely, trade marks, designs, patents or any other similar intangible property, under any law for the time being in force, but does not include copyright . in Section 65(55a) of Finance Act, 1994. Thus, while the taxable service stems from the relationship of two entities, the right that is vested in the holder is protected from the rest of the world within the jurisdiction of the law referred to in Section 65(55a). To be liable to the tax, the provider must be the holder of the intellectual property right which is one that is enforcea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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