THERMAX LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE applicant is seeking for grant of waiver of pre -deposit of Service Tax of Rs. 18,05,50,717/ - and equivalent amount of penalty imposed under Section 78 of the Customs Act, 1962.

(2.) Brief facts of the case are that the appellant is a manufacturer of ion exchange resins. In USA, one Shri Narendra Singh who was working with M/s. Purolite International Ltd., a competitor of the applicant, left the job and provided trade secret for manufacturing of ion exchange to the applicant. Their competitor M/s. Purolite International Ltd., filed a suit in the USA Court and the applicant was charged with that they are using the trade secret of M/s. Purolite International Ltd. Court proceedings were initiated against the applicant. Thereafter, the applicant entered into an agreement with M/s. Purolite International Ltd., to settle the dispute out of Court. As per the settlement, they paid considerations for the use of trade secret and became the co -owner of the Purolite's technology and information transferred by Shri Narender Singh to the applicant. The Revenue is of the view that the consideration paid by the applicant to Purolite is covered under Intellectual Property Right under reverse charge mechanism, therefore the applicant is liable to pay service tax on the entire consideration.

(3.) ON the other hand the learned AR reiterated the findings of the impugned order and submitted that the Commissioner has considered the issue in detail and arrived at a decision. As the applicant is covered under intellectual property right service therefore, the applicant be asked to pre -deposit the entire demand at this stage.