TMI Blog2019 (10) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... tual Property Right Services - appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 334 of 2010-DB - A/11706/2019 - Dated:- 27-8-2019 - HON'BLE MEMBER (JUDICIAL), MR. RAMESH NAIR AND HON'BLE MEMBER (TECHNICAL), MR. RAJU Present For the Appellant: Shri H. Ganguly, Advocate Present For the Respondent: Shri T.K. Sikdar, Asst. Commr.(AR) ORDER RAMESH NAIR The brief facts of the case are that the appellant are paying royalty against receipt of technical know-how for design of their final product manufactured by them. Revenue has contended that the royalty which the appellant is paying towards the use of IPR of foreign comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his Tribunal after careful consideration of various judgments in the case of Inductotherm Pvt. Ltd. (supra) wherein vide order dated 05/07/2019 the assessee s appeal was allowed. Order is reproduced below: This appeal has been filed by M/s Inductotherm Pvt. Ltd. against confirmation of demand of service tax, interest and imposition of penalty. 2. Ld. Counsel for the appellant pointed out that the demand has been made of reverse charge basis in respect of technical know-how obtained by the appellant form their foreign principal. Ld .Counsel pointed out that Revenue has not shown if the said technical knowhow is registered or patented in India. He argued that in absence of the said evidence demand cannot be c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was available to the appellant as well, and the appellant is liable to service tax on the services given by SICPA Holding Switzerland to the appellant. It is also the contention of the Learned Counsel for the department that the transfer of knowhow as per the Technical Agreement was not on one time basis but was on continual basis, and was to be transmitted to enable the appellant to manufacture the products on continual basis. In so far as the contention of the appellant that they are entitled to abatement for the R D. Cess paid for correct computation of the liability, the Learned Counsel for the department submitted that the Learned adjudicating authority has clearly observed that in the absence of disclosure of the total amount of Ro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of international applications by an inventor and provides that once such an application is made and registered in the member country, then the IPR would be protected in that member country. Thus, there appears to be a codified law providing for Recognition and Protection under the Indian Laws even in respect of Patents registered overseas. In our view, when the legislature has specifically provided that an Intellectual Property Right, that could be taxed as an IPR service is a right to an intangible property, which is recognised under any law for the time being in force, obviously the law being referred to here has to be an Indian Law and not the recognition of the intangible property right under the law of a third country. If an intangible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 : Intellectual Property Right means any 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. 6. The IPR as defined should be a right under any law for the time being in force. The legal position on this issue has been examined by various decisions of the Tribunal which are as under : (a) Rochem Separation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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