Intas Pharmaceuticals Ltd Vs C.S.T.-Service Tax (CESTAT Ahmedabad)
The CESTAT, Ahmedabad in Intas Pharmaceuticals Ltd. v. C.S.T.-Service Tax, Ahmedabad And Another [Service Tax Appeal No. 12716 of 2014 dated November 02, 2023] held that the services in the form of receipt of patents registered outside India are not liable to pay service tax.
Facts:
Intas Pharmaceuticals Ltd. (“the Appellant”) entered into a “Technology Transfer and Licensing Agreement” with M/s Eugenex Biotechnologies GmbH, Switzerland for the purpose of development and commercialization of recombinant human erythropoietin (EPO). He pointed out that the agreement envisages the transfer of a cell clone that produces recombinant EPO and the provision of the technology, know-how, Trade secrets, etc.
The Appellant entered into a “Technology Know-how Transfer Agreement” with M/s Biocam Ltd., UK. The said agreement envisaged the transfer of technology, and technical know-how relating to protocols for fermentation and purification to obtain pure G-CSF.
The Revenue Department contended that the transaction was under the category of import of ‘Intellectual Property Service’ and sought to charge service tax on a reverse charge basis in terms of Section 66A of the Service Tax Act, 1944.
The Appellant contended that the patent/ technologies transferred to the assessee were not registered in India and the introduction of a negative list of Services with effect from July 01, 2012, only the Intellectual Property Rights covered under the Indian Law were chargeable to Service Tax.
Issue:
Whether Services in Forms of Receipt of Patent Registered Outside India is liable to Service Tax?
Held:
The CESTAT, Ahmedabad in Service Tax Appeal No. 12716 of 2014 held as under:
