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2023 (7) TMI 307 - AT - Service TaxLevy of Service Tax - Business Auxiliary Service - activation charges for activating software which is inbuilt in the telecom system of EPABX, when the sales tax on the same activity was discharged - HELD THAT:- The facts which is under dispute is that the appellant have collected activation charges in respect of telecom equipment EPABX system which was sold earlier. The case of the department is that since activation of software activity was carried out after the sale of equipment, the same is liable for service tax under Business Auxiliary Service - in identical issue, only for the different period, has been decided in BLACK BOX LIMITED (FORMERLY KNOWN AS AGC NETWORKS LIMITED.) VERSUS COMMISSIONER OF CENTRAL EXCISE & ST, AHMEDABAD-III [2023 (1) TMI 188 - CESTAT AHMEDABAD] where it was held that amount collected by the Appellant from their customers against as “activation charges” of equipment/ software features are covered under the activity of sales of goods and not covered under the provisions of “Service” as defined in the Act. It can be seen that the facts and legal issue are identical to the present case therefore, the ratio of the above decision is squarely applicable - Appeal allowed.
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