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29. The assessee reliance on the Commissioner of Income-tax, International Taxation -1 vs. Amazon Web Services, Inc and Commissioner of Income-tax, International Taxation vs. RELX Inc (supra) doesn't help the cause of the assessee as facts are distinguishable. In the case of Amazon, the facts were that the assessee provided standardized and automated computing services/AWS services Nunhems Netherlands [A.Y 2021-22] to its customer around the globe. The hon'ble Court, interpreting the Indo-USA DTAA, held that consideration for grant of access to standard and automated facilities, of the 'right to use' scientific equipment is not 'royalty' under Article 12(4)(a) of the India-US DTAA. It also held that grant of such service does not entail transfer of any technical know-how, skill, knowledge or process and that the customers of the Assessee do not acquire any right to commercially exploit any of the Assessee's IPRs. The provision of cloud computing services does not entail placing any hardware at the exclusive disposal of the customer.

"35. The aforesaid explanation clearly indicates that the services offered by the Assessee does not entail transferring of any skill, knowledge, technology or process to its customers. The cloud computing models indicate that the Assessee has developed an infrastructure and permits the customers to access the hardware and software for developing their own content.

36. There is no cavil that the customers do not control the cloud computing hardware or software. They also have no right to commercially exploit the same.