No Service Tax on Royalty paid for permanent right to use trademark: CESTAT Delhi

Bajaj Resources Limited Vs Commissioner of Central Excise and CGST (CESTAT Delhi) The CESTAT New Delhi, in the case of Bajaj Resources Ltd. v. Commissioner of Central Excise & CGST, Udaipur, held that royalty payments for the permanent right to use a registered trademark are not subject to service tax. This decision concerned an arrangement where Bajaj Resources Limited (formerly Bajaj Consumer Care Limited) granted an exclusive, worldwide license for 99 years to M/s Bajaj Corp Limited (BCL) for trademark use. Initially, Bajaj Resources paid service tax on this royalty under ‘Intelle...