Dismissing the appeal of the revenue the Court held that the engine has already been developed by the assessee and scope of the technical services agreement was only to design a new 3-valve cylinder head with a specified combustion system for considerable improvement of fuel efficiency, performance and meeting the Indian emission standards. All products, design of the engines and vehicles are supplied by the assessee. On completion all the drawings are also delivered by the Austrian company to the assessee. The entire project was carried out in Austria and no part of the project was performed in India. Accordingly the payment does not constitute royalty. (CIT v Voest Alpine A.G. ( 2015) 55 taxmann.com 489 ( Delhi) (HC) is distinguished ) (AY. 2002-03)