Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (8) TMI 590 - AT - Service TaxClassification of service - information technology service - Intellectual Property Rights Services - trading activity or service activity - purchase and sale of third party's standardised software products - sale of in-house developed customised software - sale of hardware - refund of services tax for services provided in SEZ - Held that:- The fact of purchase and resale of software and payment of VAT/ST on the software also point to the fact that the transaction entailed ‘sale of goods' and not supply of services. Similarly, sale of hardware would be clearly a trading activity. Therefore, this is also clearly outside the purview of information technology software service. As regards the sale of in-house developed software, we have seen the product literature furnished by the appellant. From the product literature for the software developed in-house, it is seen that they are standard software, which are sold to a particular class of buyers, such as banks, insurance companies, mutual funds and various other financial service providers, under a trade/brand name. Therefore, they appear to be goods, which can be marketed or sold. Inasmuch as the appellant has discharged the sales tax/VAT liability on such software, there is merit in the contention of the appellant that liability to pay service tax does not arise on a sale transaction. - prima facie case is in favor of assessee - stay granted. Refund for services provided to the SEZ unit - Held that:- t is clear that exemption has to be claimed in the manner prescribed and the manner has been provided vide Notification No. 9/2009-ST dated 3-4-2009. In the present case it is an admitted fact that the said procedure has not been followed. Therefore, prima facie in the absence of compliance to the procedure prescribed, the appellant cannot claim exemption from levy of service tax. - assessee directed to make pre-deposit of ₹ 1.40 crore for services provided in SEZ - stay granted partly.
|