Case Law Details
SKOL Breweries Ltd. (Now known as Anheuser Busch InBev India Ltd.) Vs C.C.E & C.S.T. (CESTAT Bangalore)
Conclusion: Assignment of trademark and the IPR were amounted to permanent transfer and no service tax was applicable on permanent transfer of IP Rights by Foster’s to assessee.
Held: Assessee-company was registered under the category of „Sponsorship Service, Information Technology Software Service, Management Consultant, Consulting Engineers, Banking and Financial, Scientific and Consulting Service, Scientific Testing and Certification Service‟ etc. During one of the audits conducted for the period April 2005 to February 2010, the audit party sought details from assessee, inter alia, with respect to expenditure in foreign currency incurred by assessee, during the financial year 2006-2007. Specifically, one of the items under scrutiny was with respect to assignment of trademark by Foster‟s Australia Ltd. (Fosters) to assessee for which the Deed of Assignment dated 12/09/2006 was executed and payment of Rs. 162 crores was made by assessee to Foster‟s. Assessee-company contended that the audit objections raised by assessee and clarified to the audit authorities that this was the case of permanent transfer of all rights, title and interest in the said trademark/brand by Fosters to assessee and the said transaction qualified as „permanent transfer‟ or „sale transaction‟ and therefore was not liable to service tax. Department was not satisfied with the reply of assessee and thereafter a show-cause notice dated 21/04/2011 was issued raising a demand of Rs. 20,03,80,320/- (Rupees Twenty Crores Three Lakhs Eighty Thousand Three Hundred and Twenty only) along with interest and penalty. Commissioner passed Order-in-Original confirming the service tax proposed to be recovered in the show-cause notice along with interest and various penalties. It was held that the assignment of trademark and the IPR amounted to permanent transfer and no service tax was applicable on permanent transfer of IP Rights by Foster’s to assessee-company.
FULL TEXT OF THE CESTAT JUDGEMENT
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