HERO HONDA MOTORS LTD. Vs. CCE

JUDGEMENT

(1.) THIS is an application filed along with an appeal challenging the order of Commissioner of Service Tax, Delhi dated 03/09/2007.

(2.) The main contention of the applicant is that the Service Tax confirmed by the learned Commissioner treating their service activities as covered under Section 65(55a) of the Finance Act, 1994 is wrong in as much as the so called Intellectual Property Right transferred by them for consideration was not in respect of Trade Mark registered under the law. Definition of Intellectual Property Right as given under Section 65(55a) of the Finance Act, 1994 is as follows:

(3.) THE revenue, however, contends that as per Section 65(55a) of the Finance Act 1994 which is a broad definition which includes not only the Trade Marks which are registered under the law but also those Trade Marks which are not registered under the law but are recognized under the law. It was contended by the Authorized Representative of the Department that though it is a fact that the Trade Mark was originally got registered in respect of Motor Cycles and their parts but as the same got transferred by the applicant for a consideration for use elsewhere (manufacture of lubricants), it cannot be argued that no Trade Mark stands owned by the applicant. It was also pointed out from the wording of the agreement that what was desired to acquire the right to use the mark (Hero Honda) on the containers for the lubricant oil itself makes it clear that what was transferred for a consideration by the applicant is the right of use of such Trade Mark. It was, however, whemently denied by the learned Counsel that the expression rights indicated in the agreement purely related to commercial rights and not to any rights under the law as it was defined under Section 65(55a) of the Finance Act, 1994.