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2016 (3) TMI 402 - AT - Service TaxTaxability of maintenance and repair services relating to information technology software till December 2007 - Held that:- The articulation of legislative intent sought to be derived from this decision by the Central Board of Excise & Customs may not be tenable to the extent that it exceeds the compass of the cited decision. Therefore, the cited circular, relying as it does on the cited decision, does not permit for taxability of any software other than ‘canned software' and reliance on that circular cannot appreciably sustain the findings in the impugned order. 'Goods' are, therefore, and more particularly in the context of the new taxable entry of 2008, restricted to computer software, which appears to be interchangeable with proprietary software, whose maintenance alone is liable to be taxed prior to 16 th May 2008 under section 65(105)(zzg). Software, other than ‘canned' would not be amenable to description as computer software which is essential to start up and run the core programs of a system. ‘Information technology software' is essential for smooth running of the business activities of the user. Thus the clients of the appellant in this case would be users of ‘information technology software' and hence any maintenance of that software would be taxable only after 16 th May 2008 as decided by this Tribunal in re SAP India Pvt. Ltd. The demand under ‘maintenance or repair services' in the impugned order does not survive. - Demand set aside - Decided in favor of assessee.
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