9911796707
TMI Blog2019 (1) TMI 1370X X X X Extracts X X X X X X X X Extracts X X X X ..... acceptance of subsequent application for alteration of cause title consequent to approval for scheme of amalgamation. 2. Learned Counsel for appellant inform us that they are in dispute over tax liability of Rs. 76,78,126/- for the period between 2006-07 and 2008-09, sought to be fastened on them under section 66A of Finance Act, 1994, as recipient of 'intellectual property service' taxable under section 65(105)(zzr), along with interest thereon, and the penalty imposed under section 77 and 78 of Finance Act, 1994. Appellant had entered into an agreement with M/s HYL Technologies based in Mexico for upgradation of their manufacturing facility including supply of a module. Appellant had, under protest, remitted an amount of Rs. 51, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 enforceable against all others, and not just against the recipient of the service. 6. The enforceability of the right vis-a-vis the recipient is protected by the law of contract for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in India. It is, thus, amply clear that this is a residuary clubbing that does not specify the specific services. At the same time, it cannot be ignored that the said Rules are notified, inter alia, in exercise of powers under section 93 of Finance Act, 1994 which enables the Central Government to exempt taxable services from the levy. Consequently, such of those transactions that are not amenable to inclusion as provision of services from outside to India are to be considered as exempt. 7. In the decision, in re Catapro Technologies Ltd, the essentiality of coverage under the Indian laws for 'intellectual property' to be acknowledged has been articulated. The nature of the 'intellectual property' and its enforceability in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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