TMI Blog2019 (8) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... ess purposes.' Word 'royalty' has been defined by the Supreme Court in the case titled as Entertainment Network (I) Ltd. v. Super Cassette Inds. Ltd [ 2008 (5) TMI 671 - SUPREME COURT] as 'the remuneration paid to an author in respect of the exploitation of a work, usually referring to payment on a continuing basis (i.e. 10 percent of the sale price) rather than a payment consisting of a lump sum in consideration of acquisition of rights. Word 'Royalty' has been defined in Oxford Advanced Learner's Dictionary (New 9th Edition) as 'a sum of money that is paid by an oil or mining company to the owner of the land that they are working on' Thus understood, the assessee would have to pay a certain am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n holding that the consideration pain to Puch for supply of designs, drawings and specifications was nothing but royalty and subjected to deduction of tax at source? 3. Whether on the facts and in the circumstances of the case and true interpretation of the documents, the Hon'ble Tribunal was right in holding that there was no distinction between the expression supply and use for the supply of designs and drawings and thus the provisions of tax deduction at source were applicable to the above payment? 2. The brief facts are that the assessee had entered into an agreement with Steyr-Daimler-Puch AG (Puch), (Materised Two Wheel Division), Austria, whereby the letter head granted to the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at source. 4. The dispute in the present case is whether similarly for the payment of 3 million Austrian schilling also the assessee was liable to deduct tax at source? 5. The A.O. held that even for the payment of 3 million Austrian Schilling, the assessee was liable to deduct tax at source since it was in the nature of royalty payment. In an appeal filed by the assessee, the Commissioner held that this payment was not royalty payment and as per the convention signed between the Government of India and Austria for the avoidance of double taxation with respect to taxes on income, the amount of 3 million Austrian shillings would be taxable in the hands of PUCH in Austria and would not be exigible to tax in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he right by the grantee, which shall on payment of money, but may be a payment in kind being the part of the produce of the exercise of the right.' (excerpts taken from the Supreme Court on Words, Phrases and Legal Expressions (Judicially defined) 1950- 2015 Volume III. 8. Word 'Royalty' has been defined in Oxford Advanced Learner's Dictionary (New 9th Edition) as ' a sum of money that is paid by an oil or mining company to the owner of the land that they are working on' 9. Thus understood, the assessee would have to pay a certain amount of money to PUCH for every vehicle which is sold using its designs. 10. In our considered opinion, the Tribunal has given an u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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