Case Law Details
Commissioner of Service Tax Vs Future Brands (CESTAT Delhi)
Held that in case of Trademark License Agreement an exclusive license to use the trademark is granted and hence the same is covered within the phrase “transfer of right to use the goods” and hence not leviable to service tax.
Facts-
The show cause notices had been issued to M/s. Future Brands Ltd alleging therein that the respondent had not paid service tax on the “right to use” component of the Trademark License Agreement executed on August 27, 2008 between the respondent and Pantaloon Retail (India) Ltd for brand ‘Ajile’. The Principal Commissioner, by the impugned order dated May 18, 2015, dropped the show cause notice. Accordingly, department preferred present appeal.
Conclusion-
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