TMI Blog2018 (11) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... erty right service. As the said IPRs supplied by the foreign collaborators of the appellant are not registered in India, the technical know-how , etc. supplied by the foreign collaborators to the appellants do not fall under the category of Intellectual Property Right service thereby liable to pay service tax under Intellectual Property Right service in terms of Finance Act, 1994 - appeal allowed - decided in favor of appellant. - ST/87683/2016 - A/87948/2018 - Dated:- 15-11-2018 - Shri S K Mohanty, Member (Judicial) and Shri P Anjani Kumar, Member (Technical) Shri.Bharat Raichandani, Advocate for Appellant Shri. M.P. Damle, Asst. Comm. (A.R) for respondent ORDER This appeal is directed against Order-in-Original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ches, details of layout of the works, raw materials specifications and design in making of jigs, tools, dies, patters and moulds. The foreign collaborators have physically delivered the aforesaid data, drawings and designs in the form of booklets. Chapter 49 of Section X of Schedule I to the Customs Tariff Act, 1975 covers printed books, newspapers, pictures and other products of the printing industry; manuscripts; typescripts and plans under Chapter Heading 4906 of the Customs Tariff Act, 1975 specifically covers plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purpose, being originals drawn by hand; hand written texts,photographic reproductions on sensitized paper and carbon copies of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that the service provider must have a right to an intangible property, viz., trademarks, designs, patents or any other similar intangible property but excluding copyright and that the right over intangible property must be recognized under any Indian law for the time being in force. Intellectual property rights not recognized under Indian law are not taxable as IPR service. There is no evidence or even any allegation that the technical information supplied by their collaborators has been patented. It is not patented in India. There is no evidence on record to show that the same is patented outside India. Even if the same is patented outside India, it is not recognized by Indian law till the same is patented in India. Their contention is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid by them. This fact has been accepted by them. This fact has been accepted in the impugned order as the Commissioner has dropped the show-cause notice proposing to deny the said credit. Therefore, the case is revenue neutral. They also supported that the issuance of show-cause notice is badly time barred. 4. Learned AR for the department has reiterated the findings given in the Order-in-original. 5. Heard both sides and perused the records of the case. 5.1 On perusal of the records of the case, we find that no evidence has been adduced by the department to show that such trademarks, know-hw, etc. supplied by their foreign collaborators have been registered in India. Therefore, in view of the clarifications issued by CBEC vide ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on No.17/2004-ST dated 10/09/2004) In view of the above clarifications, we find that the appellants are not liable to pay service tax. 5.2 We also find that the Tribunal in the case of Rochem Separation Systems (India) P. Ltd. Vs. CST, Mumbai-I 2015 (39) STR 112 (Tri-Mumbai) has held that; 5. The ld. counsel appearing on behalf of the appellant stated that the Intellectual Property Right Service is defined under Section 65(55b) as below : (55b) intellectual property service means,- (a) transferring, [temporarily; or (b) permitting the use or enjoyment of, any intellectual property right;] His contention is that the technology is defined under the Technology Transfer and License Agreement to mean technical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fortified in our view by Board Circular F. No. 80/10/2004-S.T., dated 17-9-2004 which clarified that Intellectual Property emerges from application of intellect, which may be in the form of an invention, design, product, process, technology, book, goodwill, etc. In India, legislations are made in respect of certain Intellectual Property Rights (i.e. IPRs) such as patents, copyrights, trademarks and designs. The definition of taxable service includes only such IPRs (except copyright) that are prescribed under law for the time being in force. As the phrase law for the time being in force implies such laws as are applicable in India, IPRs covered under Indian law in force at present alone are chargeable to service tax and IPRs like integrat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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