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TMI Blog2014 (4) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant. The technical services being provided are those mentioned in Annexure-II to the agreement, which are expert advice and assistance with identification specification and preparation of linerboard (paper) gypsum and other indigenous raw materials to be used by the appellant in India, the expert advice and assistance during installation, erection and commissioning of the plant and also in the subsequent modifications or addition to the manufacturing plant, expert advice and assistance with the manufacture of the products and jointing compounds and joint filler including occasional supervision and problem solving, expert assistance in marketing of the final products etc. None of these services can be called intellectual property service. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rlings for the technical knowhow has been paid by the appellant to M/s.BPB. In terms of the Article 8.2 of the agreement, in addition to the amount of #400000/- for technical knowhow, the appellant were also required to pay to M/s.BPB an amount @ 3% of the annual sales in consideration for the technical services as specified in Schedule II to the agreement, provide by M/s.BPB to the appellant. The technical services were about technical advice and assistance with identification specification and preparation of linerboard (paper) Gypsum and other indigenous raw materials to be used by the appellant in India, expert advice and assistance during installation, erection and commissioning and modifications or additions to the existing equipment r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 994 for non-submission of the ST-3 returns. Against this order of the Commissioner, this appeal has been filed. 2. Heard both the sides. 3. Shri J.K. Mittal, Advocate, ld. Counsel for the appellant, pleaded that the show cause notice seeks recovery of service tax on the amount being paid by the appellant to M/s. BPB Private Limited Company, UK, England @ 3% of the annual sales turnover by treating this amount as royalty and the service tax is sought to be charged on this amount as intellectual property right service , that as is clear from the Article 8.2. of the appellant s agreement with M/s. BPB Industries, England, the amount being paid by the appellant is for technical services, as specified in Annexure-II to the agreement, that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Haryana, the Commissioner of Central Excise Service Tax, Rohtak could not issue the show cause notice to them and confirm service tax demand in respect of the some services alleged to have been received by the appellant company from offshore service provider, that in any case, when the amount on which the service tax is sought to be recovered as intellectual property services is not for the IPR services but is for some other services, no service tax can be demanded in respect of that amount and that in view of the above submissions, the impugned order is not sustainable. 4. Ms. Ranjana Jha, ld. Joint CDR, defended the impugned order by reiterating the findings of the Commissioner and pleaded that the amount being paid by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant. The technical services being provided are those mentioned in Annexure-II to the agreement, which are expert advice and assistance with identification specification and preparation of linerboard (paper) gypsum and other indigenous raw materials to be used by the appellant in India, the expert advice and assistance during installation, erection and commissioning of the plant and also in the subsequent modifications or addition to the manufacturing plant, expert advice and assistance with the manufacture of the products and jointing compounds and joint filler including occasional supervision and problem solving, expert assistance in marketing of the final products etc. None of these services can be called intellectual property service. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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