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TMI Blog2008 (1) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... Karthikeyan, Member (T) [Order] -1. In this appeal filed by M/s. Sundaram Textiles Ltd., (STL), Nanguneri, they have sought to vacate the impugned order. In the impugned order the Commissioner (Appeals) confirmed a demand of service tax of Rs.1,58,642/- made on M/s. Sundaram Textiles Ltd./M/s. Japan Institute of Plant Maintenance (JIPM) and the penalties imposed on the same person(s). Facts of the case are that STL entered into an agreement with JIPM for receiving Total Productive Maintenance (TPM) from JIPM during the period 28-2-99 to 16-8-2002. In terms of the agreement STL was liable to pay taxes due from JIPM in India. The original authority found that TPM came under the category of Management Consultancy service. After due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but for transfer of intellectual property. In this connection, she relied on the decision of the Tribunal in Yamaha Motors (I) Pvt. Ltd. v. CCE, Delhi reported in 2006 (3) S.T.R. 665 (T) = 2005 (186) E.L.T. 161 (Tri.-Del.). In the said order the facts of the case were that the Yamaha Motors had received right to use the Trade Marks owned by Japanese Company also received intellectual property rights. The personnel of the appellant therein received instruction from the Japanese Company in getting familiar with the technical information as per the agreement. The Tribunal decided in that case that the consideration paid to the Japanese Company was for transfer of Intellectual Property rights and not for any consultancy services. Another de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TL. Intellectual Property sold was a part TPM, a comprehensive management technique. The impugned order deserved to be sustained. 5. I have carefully considered the case records and the rival submissions. JIPM rendered a patented service called 'Total Productive Maintenance' to STL. Of and on personnel of JIPM visited STL and trained their staff in TPM. TPM helps increase production, simultaneously increasing employee morale and job satisfaction. It is a tool intended to enhance the productivity of an establishment on a continuing basis. The technology is transferred through audio and video devices as patented Intellectual Property. TPM is a patented technique and intellectual property transferred for consideration to STL for i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensively dealt with the same issue. The correct interpretation of Rule 6 of S.T. Rules would result in holding that in the case of foreigners who render service in India and who do not have an office in India, S.T. is payable by the agent or by any authorised person on behalf of foreigner/NRI. The Rule as it stood prior to 16-8-2002 envisages three persons, i.e. the service provider, his agent or authorised person and the service receiver. In the present case, K.S.E.B. cannot be considered as an agent of SNC Lavelin, Canada for the simple reason that the former is a service receiver not an agent of the foreign company. K.S.E.B. also cannot be considered as an authorised person on behalf of the foreign company for the reason that K.S.E.B. do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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