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2018 (8) TMI 1226 - AT - Service TaxMaintenance or repair services - Reverse Charge Mechanism - appellant has paid an amount to their holding company for maintenance of SAP computer software system - period from 01.01.2005 to 18.04.2006 - Held that:- This law is now settled by the Apex Court in the case of Indian National Ship Owners Association [2009 (12) TMI 850 - SUPREME COURT OF INDIA] by holding that before enactment of Sec.66A, there was no authority vested with the Government to levy service tax on the amounts paid for services received from outside India - for the period from 01.01.2005 to 18.04.2006, service tax liability would not arise on appellant under reverse charge mechanism. Post 18.04.2006 - for the period in question, i.e., 19.04.2006 to 31.05.2007, the demand has been raised under maintenance or repair services, the reasoning given by adjudicating authority is that software maintenance is also a maintenance of goods - Held that:- The explanation which was added to bring into tax net, the computer software as goods was held to be effective from 01.06.2007 only - In the case in hand, it is submitted and not disputed by the revenue that from 01.06.2007 appellant has started discharging appropriate Service Tax liability on the payments made by them under reverse charge mechanism - period post 19.04.2006 to 31.05.2007; the demands confirmed by the adjudicating authority are unsustainable and liable to be set aside. Appeal allowed - decided in favor of appellant.
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