ORDER
P.G. Chacko, Member (J)
1. The lower authorities have demanded Rs. 62,35,745/- from the appellants towards Service Tax on the amounts of royalty paid by them to their foreign collaborator during the period October, 1998 to March, 2002. They have also imposed penalties on the assessee. Ld. Counsel for the appellants submits that royalty paid for Technical Know-how involving intellectual property was not taxable under the Finance Act, 1994 prior to 10-9-2004. Even if such service be assumed to be taxable under the said Act, the benefit of exemption under Notification No. 18/04-ST, dated 10-9-04 is available to the appellants in respect of the intellectual property right acquired by them during the period of dispute. Ld. Counsel has also relied on the following decisions of this Tribunal.
(i) Aviat Chemicals P. Ltd. v. CCE, Mumbai
(ii) Navinon Ltd. v. CCE, Mumbai-IV
4. We have heard ld. SDR also.
5. We have found a strong prima facie case for the appellants on the strength of the case law as well as the Notification ibid. Accordingly, there will be waiver of pre-deposit and stay of recovery in respect of the amounts of tax and penalties.
(Order dictated and pronounced in open Court)