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2017 (1) TMI 1235 - AT - Service TaxSoftware maintenance services - demand on the ground that such software maintenance activity would fall under the category of management, maintenance or repair service - whether the service is taxable and appellant liable to pay service tax from 09.07.2004? Held that: - reliance placed in the case of Phoenix IT Solutions Ltd. Versus Commissioner of Central Excise, Visakhapatnam [2011 (1) TMI 642 - CESTAT, BANGALORE], where it was held that maintenance of software became taxable only from 1-6-2007 - the activity of software maintenance provided by the appellant, which is subject matter of the dispute in this appeal, has become taxable only with effect from 01.06.2007. This being the case as the period of dispute is prior to this date, the impugned order will not sustain - appeal allowed. Software maintenance services - period from April 2007 to March 2008 - Held that: - for the period prior to 01.06.2007, the activity of software maintenance provided by the appellant to APEPDCL will not be liable to service tax liability. However, for the period subsequent to 01.06.2007, said activity will definitely be liable to service tax under the management, maintenance, repair services - the issue has already been in agitation and that periodical SCN have been issued to the appellant, issue being one of interpretation, the imposition of penalty under section 76 on the appellant is hereby set aside - The matter is remanded to the original authority for the limited purpose of calculating the tax liability of the appellant for the said services for the period 01.06.2007 till 31.03.2008 - matter on remand. Appeal partly allowed and part matter on remand.
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