ABB LTD. Vs. COMMISSIONER OF SERVICE TAX, BANGALORE

JUDGEMENT

(1.) THE assessee has already deposited the Service Tax of Rs. 39,98,975/ - after the issue of show cause notice. The learned counsel submits that penalty of like -sum is not leviable in the matter, as the issue pertaining to levy of Service Tax under Intellectual Property Service is under challenge.

(2.) THE appellants have transferred technical know -how, which according to them cannot come within the ambit of Intellectual Property Right. They submit that this is a different aspect of the matter according to the definition. The learned counsel submits that as the assessee were holding bona fide that they are not covered under the category, the levy of penalty is not justified in the matter. He submits that as they have deposited the Service Tax, they be given waiver for interest and penalty.

(3.) THE learned SDR takes us through the findings of the Commissioner and submits that passing on Technical Know -how is covered to Intellectual Property Right. He refers to Section 65(55aA) of the Finance Act, 1994 as amended from time to time and to the definition of Intellectual Property Rights to mean any right to intangible property, namely, trade marks, designs, patents or any other similar intangible property, under any law for the time being in force, on which services are provided by transferring temporarily or permitting the use or enjoyment of, any of Intellectual Property Right, therefore, the tax levied is justified.