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TMI Blog2011 (8) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent. [Order per : M. Veeraiyan, Member (T) (Oral)]. - Heard both sides on the stay petition extensively. 2. The applicant is seeking waiver of demand of Service Tax totalling around 14.45 crores, out of which, Rs. 13.4 crores relate to demand under the category of Business Auxiliary Services said to have been received from the Subsidiaries of the applicant who are operating fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and upgrading, adopting and enhancing the utility of the software services being provided, at the request of the customers based on experience/difficulties faced during implementation. The said activities entirely fall under the category of Information Technology Software Services. Before 16-5-2008, Service Tax was not leviable on the said Information Technology Services. Further, prior to the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e services, which were made taxable only w.e.f. 16-5-2008. 4. The learned SDR submits that the activities of the Subsidiaries directly benefit the applicant and the payment has been made by the applicant to their Subsidiaries and, therefore, the services have been rightly held taxable under Business Auxiliary Services during the relevant period. 5. We have carefully considered the subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further, the claim on behalf of the applicants that the services rendered are in the nature of Information Technology services and, therefore, not taxable prior to 16-5-2008 appears acceptable. 6. The learned Chartered Accountant submits that the tax liability for the period from 16-5-2008 is approximately Rs. 1.62 crores. 7. Considering the entire facts and circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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