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2019 (7) TMI 1699 - CESTAT AHMEDABADRefund of Service Tax - appellant being a Software Developer of Education Software - Development of Maths Items Clones - Psychological Services used for export of output service - denial on the ground of nexus - HELD THAT:- The service namely “Development of Maths Items clones” is a part of the Software which is developed by the appellant. In this particular Software, it is outsourced from the service provider, since this particular “Development of Maths Items” is used in the development of the final package Software by the appellant, it is directly used in the output service, therefore, there is no doubt that the service of “Development of Maths Items” is an input service - credit allowed. Psychological Service - HELD THAT:- It is very common in the Software Industry that there is a huge attrition ratio and to avoid the attrition ratio, the employees need to be given the counselling by the Psychological Professionals. This ultimately help to retain the employees and which contributed in the overall performance of output service i.e. Development of Software. Therefore, both the services are directly used for providing the output services. Appeal allowed - decided in favor of appellant.
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