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2014 (2) TMI 805 - AT - Service TaxWaiver of pre deposit - Demand of service tax - Information Technology Software Services - Held that:- The subject matter of the impugned demand is IT software which, in one stream, was transferred by the appellant to their customers through internet to enable the latter to download the same and use it for their purposes under specific licence granted in this behalf and, in another stream, recorded in compact discs (CDs) and sold off the shelf to customers - As regards IT software recorded in CDs and sold to customers, the question whether service tax under the same head was leviable on this activity irrespective of any excisability of the product is highly debatable. Therefore, for the present purpose, we hold that the appellant has not made out any prima facie case on merits against whatever service tax and education cesses were demanded on the value of IT software transferred to their clients electronically. Adverting to the plea of limitation, we find that the appellant declared their activities to the department, admittedly, only in May 2009. Prior to that date, there was no disclosure of the activities to the department even though the appellant was bound to be aware of at least one stream of their activity having been covered under Section 65(105)(zzzze) of the Finance Act, 1994 - Conditional stay granted.
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