Packaging services cannot be considered to be availed directly or indirectly in maintaining/protection of Trade Mark

 Brief Facts of the case:

The appellant (assessee firm) is holding the brand name of Wagh Bakri Tea. They are letting their brand name to others and are paying service tax on such royalty charged received under Intellectual Property Right Services. Appellant has obtained a legal opinion, as per that opinion, appellant is also required use the trade mark directly if it wants to retain right on the trade mark and if the appellant does not use the trade mark but only grants permission to others than appellant may loose the ownership right of trade mark and may also be exposed to litigation. Working upon the advice appellant also gets the tea packed on its own account and avail the services of packers etc. for which credit has been claimed by the appellant. The appellant also claimed credit in respect of Telephone Services & Chartered Accounts Services & Security Services as the same used both with respect to providing Intellectual Property Right Services as well as the activity of sales of their products got packed by the appellant.

All such above cenvat credits were disallowed by the adjudicating authority by invoking the extended period of limitation, he also levied equivalent penalties.

Aggrieved by the order of the adjudicating authority, assessee preferred an appeal before the CESTAT.

 Contention of the Assessee:

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