2019 (4) TMI 1416

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..... license to make use of the 'patents' and the engineering know-how to manufacture, use and sell "Licensed Products" in the Licensed Territory, that is, the Republic of India. 2. The Engineering know-how comprising design data, relevant drawings, manufacturing techniques etc. for manufacture of the machinery and allied equipment were delivered outside India, the training of the Appellant's personnel were to be provided outside India at the Appellant's expense and the engineering fees if any, for tender support or technician's charges for deputation to India was payable separately on a case to case basis. The Royalty was to be paid (remitted) on all orders for the 'Licensed Products' executed by the Appellants during the currency of the Agre .....

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..... a and therefore not covered for the levy of Service tax in the period prior to 19-04-2006. 5. Show Cause Notice dated 10/10/2017 was issued for nonpayment of Service Tax on the Consultancy and Technical Advice Services received by the appellants. The Adjudicating Authority confirmed demand of Service Tax, amounting to Rs. 37,67,052/- along with interest and the amount of Rs. 18,09,701/- and Rs. 85,475/- was appropriated. Equal penalty under Section 76, 77 and 78 were imposed. Hence, the present appeal before the Tribunal. 6. The Ld. Advocate appearing on behalf of the appellant submits that service has been received from outside India under the category of  'Intellectual Property Right Service' since patents are transferred not the .....

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..... more res-entigra in view of the circular issued by CBEC and DGST dated 21/12/2007. Para 13 and 13.1 of the circular are being reproduced below:- "13. Service Tax on Receipt of Services from Outside [import of Services]. 13.1 What is the Statutory provision regarding taxing of services provided from outside India and received in India? Section 66A of the Finance Act, 1994, inserted with effect from 18-04-2006, provides that where any taxable service is provided or to be provided by a person who has established a business or has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India, and is received by a person who has his plac .....

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