Commissioner of Central Excise, Kolhapur Versus M/s. Yashwantrao Mohite Krishna SSK Ltd
Intellectual Property service – Demand of service tax – Agreement for marketing country liqour – Held that:- For the packing material and essence supplied by M/s Talreja Trade to respondent, proper sale invoices have been issued charging Sales Tax/VAT as applicable. Respondents have also directly purchased packing material and essence from others. – For sale of ‘country of liquor’ by respondent, proper sale invoices have been issued. In the said sale invoices the name of M/s Talreja Trade (HUF)’ is shown as ‘selling agent’. – The sale of ‘country liquor’ have been declared in the returns filed with the Sales Tax Department by the respondent.
On appreciation of the clauses of agreement with the evidence on record, it is evident that no ‘Intellectual Property Service’ have been given by the respondent. The arrangement/agreement between the respondent and M/s Talreja Trade are for ensuring maximum production and sale of C.L. so as to maximise profits for both the parties. The minimum guarantee of profit per month given or assured by the agent to the respondent have been misunderstood as ‘Royalty’ which is not the fact. The ground of limitation is also upheld in favour of the respondent. – Decided against Revenue.
Source – TMI