9911796707
TMI Blog2015 (11) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... the technical know-how received by the appellant and the royalty payment made by the appellant to Unisys is nowhere established to result from the use of any Intellectual Property Right. Intellectual Property Right not covered by the Indian laws would not be covered under taxable service in the category of Intellectual Property Right Services. We are fortified in our view by Board Circular F.No. 80/10/2004-ST dated 17/9/2004 which clarified that "Intellectual Property emerges from application of intellect, which may be in the form of an invention, design, product, process, technology, book, goodwill etc. In India, legislations are made in respect of certain Intellectual Property Rights (i.e.IPRs) such as patents, copyrights, trademarks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8' of the agreement, TUL was required to pay licence fee / royalty on an going basis to Unisys on all sales of products to parties other than Unisys at the fixed percentage of the sales. The Agreement was amended in 2005. The amended agreement also required the appellant to remit a royalty on all products by TATA. Meanwhile TUL had also been renamed as Tata Infotech Ltd in February, 1997 and later it merged with appellant i.e. TCS. The show cause notice was issued to the appellant on 7/1/2009 proposing to levy tax on the royalty paid by them to M/s. Unisys under the category of Intellectual Property Right Services . Demand was confirmed in adjudication and penalties were also imposed. The order the Adjudication was upheld by the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erty Right that the right has to be a specific Right under a specific Law. Examples are given under the definition such as the Trade Mark which is a right provided under Trade Marks Act . Similarly the right mentioned as 'design' in the definition is a right under the Design Act . Therefore we find that the technical know-how received by the appellant and the royalty payment made by the appellant to Unisys is nowhere established to result from the use of any Intellectual Property Right. 4.2 We may further go on to add that the Intellectual Property Right should be a right under the Indian Law. Intellectual Property Right not covered by the Indian laws would not be covered under taxable service in the category of Intellectual Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
