Case Law Details
Intas Pharmaceuticals Ltd Vs C.S.T.-Service Tax (CESTAT Ahmedabad)
Introduction: In the case of Intas Pharmaceuticals Ltd vs. C.S.T. – Service Tax, the issue at hand revolves around the taxability of service tax on technical knowhow transferred by Intas Pharmaceuticals Limited to a recipient in Singapore. The primary question addressed in this case is whether the technical knowhow is protected by Indian law, thus qualifying it for taxation under the category of “Intellectual Property Service.”
Detailed Analysis:
1. Background of the Case: Intas Pharmaceuticals Limited entered into an agreement with M/s Scigen, Singapore, wherein they agreed to transfer technical knowhow related to manufacturing and marketing two formulations. The appellant received consideration in US Dollars for this transfer. An audit objection was raised regarding the taxability of this transaction under the category of “Intellectual Property Service.”
2. Export of Service Issue: The audit’s view was that this service does not qualify as an “Export of Service” because the technology was used in Pune, India, and hence, did not meet the criteria of being an export. The appellant had already paid a substantial amount of service tax and interest.
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