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TMI Blog2018 (8) TMI 1221X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture and export of spices and spice products. 50% of their issued capital is held by M/s. AVT group and 50% by M/s. McCormick Co Inc, USA. The appellants were receiving the services of the latter with reference to technical know-how and assistance as per an agreement entered into between them and they were paying fees for those services as royalty. As it appeared that the services of temporary transfer of technical know-how fall under "intellectual property services" as defined in Section 65(55a) of the Finance Act, 1994 and the appellant as service receiver is liable to pay service tax on the said services as the service provider is not a registered unit in India, having no office in India, a show-cause notice was issued to the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectual copyright and further no transfer of any intellectual property has been established. The learned counsel also referred to the definition of intellectual property contained in clause 55(a) of Section 65 which is reproduced herein below:- "Any right to intangible property namely trademarks, designs, patents for any other similar intangible property, under any law for the time being in force, but does not include copyright." He also submitted that the Central Government has clarified in its circular No.80/10/2004 dt. 17/09/2004 that phrase "law for the time being in force" used in the definition of intellectual property implies that such laws as applicable in India. Further his further submission is that right to use technical know- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry or any decision made at international conference etc., there should be a municipal legislation enacted for giving effect to such international agreement or treaties. Further we also find that the show-cause notice does not clearly state the nature of know-how which the appellant has availed from his foreign company. Further we find that in the case of Navinon Ltd. cited supra, it has been held by the Tribunal that receiving technical know-how from foreign company against payment of royalty not being an authorised representative of foreign company cannot be fastened with service tax liability. We also find that this decision of the Tribunal has been subsequently followed in subsequent decisions cited supra. Therefore by following the ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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