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2018 (6) TMI 1013 - AT - Service TaxBusiness Auxiliary Services - services outsourced by the appellant to HSCL for implementation of Wide Area Network (WAN) for ETTSA - Management, Maintenance and Repair Services - MMR for maintenance of software - non-payment of Service Tax - Held that:- The activity out sourced to HSCL was in the nature of Information Technology Service. The definition of BAS has excluded Information Technology Services, through the above Explanation. Consequently, it is concluded that even if the appellant has procured the service of establishing WAN through the outsourced service provider HSCL, the activity will not be covered within the definition of BAS - also, in the present case the service rendered by the appellant has been rendered to a Government Department which are not engaged in business but in rendering public services. Hence the procurement of service for ETTSA cannot be brought within the levy of service tax under BAS - the levy of service tax on the activity of setting up of WAN, which has been outsourced to HSCL is not justifiable and hence, the demand is set aside. Levy of Service Tax - Management, Maintenance and Repair Services - activities carried out by the appellant for ETTSA - Held that:- The activities which the appellant was required to carry out to for ETTSA included supply of hardware, software, UPS, LAN equipment and also paying the structural cabling and setting up of the WAN network - The maintenance, if at all carried out by the appellant, was done as part of the operation of the computer systems. Hence, such activities will not fall within the Management Maintenance or Repair Service. It appears to us that the activities outlined in the contract would more appropriately be covered within the definition of ‘Business Support Services’ which were included with effect from 1/05/2011, under Section [65/105(104(c)] - demand set aside. MMR for maintenance of software - Held that:- For the period under dispute, it cannot be presumed that the maintenance or software service is covered under the category of MMR. Consequently the demand of service tax on maintenance of software, under the category of MMR is not justified and hence set aside. Appeal allowed - decided in favor of appellant.
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