TI METAL FORMING Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THIS appeal by the assessee has come up for hearing on the point of waiver of pre -deposit and stay. The dispute relates to the service provided by the appellant to various parties under different agreements. Sample copy of one such agreement entered with M/s. Ramanathan Metal Sections has been brought on record along with the paper book. The relevant part of the agreement runs as under: The licensee represented to TII (appellant herein) that they are fully equipped and have the relevant know -how and expertise to manufacture the products in their premises at 7, SIDCO Road, Developed Plot Estate, Thuvakudi, Trichy - 14 and requested TII to allow them to use the Trade Mark TI Metsec on the products and to manufacture and market the same by the licensee in the territory listed below. The case of the appellant is that the service provided under the agreement - by way of permission to use the trademark - would at best fall under the definition of Intellectual Property Rights service and not under the Consulting Engineer Service as defined in Clause (31) of Section 65 of the Finance Act, 1994. Under the said clause, service rendered by way of advice, consultancy or technical assistance alone can be called service provided by a consulting engineer, and, therefore, the impugned demand by way of service tax towards Consulting Engineer Service allegedly provided by the appellant is not maintainable. It is stated that for the service provided as Intellectual Property Rights Service, the appellant is paying service tax from 10.09.2004.

(2.) HEARD the learned SDR. We find prima facie case in favour of the appellant, and accordingly direct full waiver of pre -deposit and stay of recovery of the amount of service tax etc., till disposal of the appeal.

(3.) THE stay application thus gets disposed of.