𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗮𝗻𝗱𝗶𝗴𝗮𝗿𝗵 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗧𝗲𝗰𝗵𝗻𝗶𝗰𝗮𝗹 𝗞𝗻𝗼𝘄-𝗛𝗼𝘄 𝗮𝗻𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 📢 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗥𝘂𝗹𝗶𝗻𝗴: "Know-how is not an Intellectual Property Right (IPR) under Service Tax law, and its transfer is not subject to Service Tax. Cum-tax benefit is applicable even in reverse charge cases."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Schneider Electric India Pvt. Ltd. 𝗜𝘀𝘀𝘂𝗲: Whether the royalty paid by Schneider Electric for technical know-how is liable to Service Tax, and if cum-tax benefit applies under reverse charge.

📝 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that technical "know-how" transfer does not qualify as Intellectual Property Rights (IPR) under Service Tax law, making it non-taxable. It clarified that the exemption applies even under reverse charge and recognized Schneider Electric's bona fide belief, allowing the appeal and dismissing the revenue's case.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Schneider Electric India Pvt. Ltd. vs. Commissioner of Service Tax, Delhi 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 3895 Of 2012 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 28 June 2023 📜 This decision confirms that technical know-how does not constitute a taxable IPR service under Service Tax law, and cum-tax benefits apply even in reverse charge circumstances.