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2020 (4) TMI 181 - AT - Service Taxinformation technology software service - Demand of service tax - portion of the consideration received from the four customers in India computed in terms of employees utilised at the premises of the respondent for fulfilling the transaction contracted with them - receipts for operation of ‘offshore development centre’ - HELD THAT:- The normal activities of a commercial transaction with the four customers, notwithstanding the deployment of staff at the premises of the latter being taxable as a service, which may have been recompensed by monetising the time spent by the employees of the respondent on discharging a contractual obligation cannot be construed as a service merely because another transaction, being taxable service, has been established. To extend the logic of the grounds of appeal would be tantamount to subjecting every commercial activity, other than manufacture, to the tentacles of Finance Act, 1994 which clearly is not the legislative intent. The designation of such deployed staff in a segregated portion of the premises of the respondent, not too unusual model in the software industry, is merely an extension of off-site activity pertaining to ‘information technology software service’ that is not exigibile to tax. Appeal dismissed - decided against Revenue.
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