9911796707
TMI Blog2014 (4) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.98 crore towards the use of such ‘Goodwill’, which the Revenue has considered as the gross taxable value in the services of allowing to use the ‘Goodwill’, which would fall under the definition of ‘Intellectual Property Right’ and consequently, it is chargeable to service tax under the taxable services, ‘Intellectual Property Services’ - at the time of disposal of the Appeal. No financial hardship has been pleaded. In the result, the Applicant failed to make out a prima facie case for total waiver of predeposit of the dues adjudged - Conditional stay granted. - APPEAL NO.ST/A/548/2011 - ORDER NO.SO/75264/2014 - Dated:- 6-3-2014 - DR. D.M.MISRA AND DR. I.P.LAL, JJ. FOR THE APPELLANT : SHRI R.RAGHAVAN, ADVOCATE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty and hence, cannot be construed as consideration received against transfer of goodwill. 2.1. Further, he has submitted that Kanan Devan cannot be treated as a registered Trade Mark of the Applicant, as Kanan Devan is the name of a tea-hill in the Idukki District of Kerala. It is contended that as per Section 9 of the Trade Mark Act, 1999, the name, Kanan Devan cannot be registered. It is his submission that the Applicant had registered the Trade Mark for Kanan Devan Tea and not Kanan Devan and they had merely transferred the Goodwill in the name style as Kanan Devan to KDHP as part of the slump sale of its ongoing business for use in the corporate name of the transferee company(KDHP) and there has been no trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Consequently, the demand is barred by limitation. 3. Per contra, ld. AR for the Revenue reiterating the findings of the ld. Commissioner, has submitted that for the purpose of payment of ; stamp duty a total amount of Rs.8.98 crore had been earmarked towards the intangibles, including the right to use the Goodwill , viz. Kanan Devan as part of the corporate name of the purchaser. The ld. AR further submitted that by a Corporate Licence Agreement dated 24.09.2005 between the Applicant and KDHP, the Applicant granted a non-exclusive licence to KDHP to use Kanan Devan as part of KDHP s corporate name for a period of 30 years. Further, the Applicant had reserved the right to terminate the said Agreement dated 24.09.2005 for violation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hown under the category of a consideration towards intangibles including Goodwill , right to use Kanan Devan as part of the name of the purchaser, is only for the purpose of payment of stamp duty . The Revenue, on the other hand, disputes the said claim of the Applicant and submits that there had been no absolute transfer of Goodwill i.e., right to use Kanan Devan , in view of a subsequent Agreement dated 24.09.2005, but for use of the said name for a period of thirty years. To examine the rival contentions, it is necessary to look into the respective clauses of the Deeds of Transfer dated 30.03.05, 02.07.2005 and Corporate Name License Agreement dated 24.09.2005. At para 8 of the Deed of Transfer dated 30.03.2005 at clause (d), it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had consciously allowed to use the name, Kanan Devan in the corporate name of KDHP for a period of 30 years, reserving the right to terminate the use of such name within the said period. It is difficult to appreciate, prima facie, that in the event, the said goodwill in the name and style as Kanan Devan , if does not belong to the Applicant, then there cannot be a question of allowing KDHP to use the same for a period of 30 years. Prima facie, we find that the Applicant themselves had declared in the respective Deeds allocating the total amount, Rs.8.98 crore towards the use of such Goodwill , which the Revenue has considered as the gross taxable value in the services of allowing to use the Goodwill , which would fall under the defini ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
