TMI Blog2017 (6) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in India - services received by the appellant-assessee are not covered under IPR service, under Section 65 (105) (zzr) of the Finance Act, 1994. Therefore, no service tax is payable by the appellant-assessee. Levy of service tax - IPR service - Held that: - the agreement is dated 11.03.2002 whereas the levy of tax under IPR service has come into force on 10.09.2004. As the agreement is executed on 11.03.2002, prior to introduction of IPR Service, the demand of service tax is not sustainable. Appeal allowed - decided in favor of assessee. - ST/610-613/2012-DB, ST/743/2012-DB - A/61077-61081/2017-CU[DB] - Dated:- 15-6-2017 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Technical) Shri A. Hidayatullah, S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lectual Property Rights service for the normal period of limitation and demand pertaining to extended period of limitation was dropped. Aggrieved from the said order of ld. Commissioner, Revenue is in appeal on the ground that extended period of limitation is invokable and appellant-assessee is in appeal on the ground that demand is not sustainable. 3. The ld. Advocate for the appellant-assessee appeared and submits that the demand is sought to confirm against Intellectual Property Right service for royalty payments made by them to M/s. Showa Corporation, Japan. It is the contention of the ld. Counsel that the payment made towards royalty is not under Intellectual Property Rights service under Section 65 (55) (a) (b) of the Finance Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se requires, - (55) (a) intellectual property right means any right to tangible property, namely, trademarks, designs, patents or any other similar intangible property, under any law for the time being in force, but does not include copyright.. (55) (b) intellectual property service means, - (a) transferring, {temporarily} whether permanently or otherwise; or (b) permitting the use or enjoyment of, any intellectual property right. (105) taxable service means any service provided or to be provided - (zzr) to any person, by the holder of intellectually property right, in relation to intellectual property service. 7. On going through the said provisions of the Act, we find that, to tax under serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not registered in India under Indian law. However, the original authority held that registration of IPR under Indian law is only for obtaining protection from its infringement. He observed that the levy of tax is not dependent on the fact of such registration. We find that such conclusion is not legally tenable and is beyond the scope of taxable service as defined in Finance Act, 1994 : Section 65(105)(zzr) of the Act defines in the taxable IPR service tax as under : Taxable service means any service provided or to be provided to any person by the holder of intellectual property right, in relation to intellectual property service; Section 65(55a) of the Act defines Intellectual Property Right to mean as under : I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Intellectual Property Rights services, under section 65 (105) (zzr) of the Finance Act, 1994, therefore, no service tax is payable by the appellant-assessee. 8. In that circumstance, we hold that services received by the appellant-assessee are not covered under IPR service, under Section 65 (105) (zzr) of the Finance Act, 1994. Therefore, no service tax is payable by the appellant-assessee. 9. In these circumstances, we hold that extended period of limitation is not invokable and the demand is not sustainable. We also take note of the fact that the agreement is dated 11.03.2002 whereas the levy of tax under IPR service has come into force on 10.09.2004. As the agreement is executed on 11.03.2002, prior to introduction of IPR Service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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