Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2021 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (2) TMI 513 - HC - Service TaxExtended period of limitation - demand under the head maintenance and repair of computer software - validity of circular dated 17.12.2003 - Whether, in the facts and circumstances of the case, the Tribunal was right in holding that the demand is raised beyond the normal period of limitation, resulting in undue gains to the Respondent? - HELD THAT:- Admittedly as per the stand taken by the respondent themselves before the High Court of Madras, it is evident that activity of maintenance of computer software was exempt from the provisions of the Act prior to 2006. We are in agreement with the view taken by the High court of Madras in KASTURI & SONS LTD, CHENNAI VERSUS UNION OF INDIA & OTHERS [2011 (2) TMI 76 - HIGH COURT OF MADRAS], where it was held that There was no occasion to consider the implications of the Finance Act 2003 to 2006 in respect of the terms 'information technology' and 'maintenance of software' and the decision rendered in Tata Consultancy Service v. State of Andhra Pradesh [2004 -TMI - 4143 - Supreme Court] in the context of the said Act under Entry 54, List-II of VII Schedule to the Constitution cannot be cited for a clarification in respect of the Finance Act, 1994 which is a Parliamentary enactment. It is pertinent to mention here, that in the show cause notice itself no allegations of fraud collusion, misstatement or suppression of facts have been stated against the respondent, therefore, the demand is barred by limitation under Section 73 of the Finance Act, 1994 as well. The substantial questions of law are answered in against the appellant and favour of the respondent - Appeal dismissed.
|