TMI Blog2010 (12) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court in Tata Consultancy Service (supra) was computer software, which is essentially different from application software. The software which is inbuilt in a computer, which is otherwise called operating software, is known as computer software in common parlance. The decision in Tata Consultancy Service (2004 -TMI - 4143 - Supreme Court) is applicable to such software. Such software, no doubt, involves intellectual property. Application software also involves this property. However, the legislature in its wisdom has chosen to differentiate application software from operating software (computer software) for the purpose of levy of service tax and, accordingly, the maintenance of application software has been specifically designated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice to be rendered by the appellant to their clients (banks) in respect of the application software already licensed and installed in the system owned by the bank. It is submitted that the appellant was not liable to pay service tax on any information technology service during the period of dispute inasmuch as this service came to be taxable with effect from16/05/2008only. The Counsel has relied on the Tribunals recent decision in appeal No.ST/394/09 (SAP India Pvt Ltd., Vs. CCE, Bangalore-III) reported in 2010-TIOL-1569-CESTAT-Bang. Apart from the merits of the case, a plea of limitation has also been raised against the impugned demand of service tax. Case law has been relied on in this connection also. The learned JDR reiterates the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service (supra) is applicable to such software. Such software, no doubt, involves intellectual property. Application software also involves this property. However, the legislature in its wisdom has chosen to differentiate application software from operating software (computer software) for the purpose of levy of service tax and, accordingly, the maintenance of application software has been specifically designated as information technology software. It is necessary to give effect to the legislative policy. This is precisely what was done in SAP case and the same has to be got to be done in the instant case also. The appellant has already established a case on merits in their favour and therefore, it is not necessary for me to examine o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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