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2015 (10) TMI 2410 - AT - Service TaxLiability of Service Tax and Penalty Imposed – CENVAT Credit on input services – Maintenance of computer software and Manpower recruitment service – Appellant contended that as per specific amendment under section 65 of Finance Act under category of maintenance and repair service w.e.f. 1.6.2007 where maintenance of software specifically includes computers and will have retrospective effect – Further contended that they are providing IT Services which became taxable only w.e.f. 16.5.2008 where software services brought under service tax net and were entitled to avail 20% credit - service tax was demanded on the gross value of service, without allowing cum tax benefit. Held That:- Maintenance of computer software - Board clarified that software is considered as "Goods" under section 65 (64) towards "Maintenance or Repair Service" - Amendment cannot have retrospective effect prior to 1.6.2007 – Demand liable to be set aside. Man Power Recruitment Service - Appellant's contention that they are not covered under Man Power Recruitment Service on ground that they have not utilized service and their another contention that providing of technical engineers from company is only incidental to software service is not acceptable – Demand is sustainable. Credit on input service utilized towards "Man Power Recruitment Service" during the period 10.9.2004 to 31.3.2006 - Once held that service tax is payable on Man Power Recruitment Service, appellants are entitled to avail credit on input service subject to verification by authorities - When service tax demanded, cum tax benefit is eligible on total gross value of services on Man Power Recruitment Service – Penalty set aside – Decided partly in favour of assessee.
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