TMI Blog2017 (10) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... e was not taxable. Extended period of limitation - penalty - Held that: - The show-cause notice and impugned order does not give any specific grounds as to why extended period can be invoked in such circumstances. In these circumstances, the extended period of limitation cannot be invoked and consequently the demand of duty and penalty cannot be sustained. Appeal allowed - decided in favor of appellant. - ST/826/12 - A/90286/17/STB - Dated:- 23-10-2017 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri Dayanand K., CA for the appellant Shri B. Kumar Iyer, Supdt.(AR) for the respondent ORDER Per: Raju This appeal has been filed by M/s. Sonata Information Technology Ltd. against con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... include the computer software for the purpose of service tax. He pointed out that the said circular dated 07.06.2007 was however, held to be contrary to the statutory provisions by the Hon'ble High Court in Kasturi Sons Ltd. - 2011 (22) STR 129 . Ld. CA further pointed out that the show-cause notice has been issued invoking the extended period of limitation. He pointed out that even after audit a lot of time was taken to issue show-cause notice. He pointed out that appellants were filing service tax returns regularly and the show-cause notice was issued simply because there was change of mind of CBEC. He argued that even CBEC was of the opinion that no service tax was leviable on maintenance and repair of computer software and had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... systems and computer peripherals vide Notification No.20/2003-S.T., dated 21-8-2003. As such computer software would form a part of computer systems would be covered under this notification. Under the category of consulting engineer vide Notification No.4/99-S.T., dated 28-2-99 taxable service provided to any person by a consulting engineer in relation to computer software is exempted. The definition of Business Auxiliary Service also specifically provides that; inter alia, maintaining of computer software is covered in the T service, which is excluded from the scope of business auxiliary service. Taking the above into consideration, it is to clarify that maintenance of Software is not chargeable to Service Tax. Suitable Trade N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is seen that even CBEC was not sure about the liability of service tax on the said services during the period 09.07.2004 to 06.10.2005. The first circular approving the liability of service tax on the said activity was issued on 07.10.2005 and the circular prior to that clearly held that the said service is not taxable. In these circumstances, it cannot be said that the appellants could not have had a bonafide belief that the said service was not taxable. The show-cause notice and impugned order does not give any specific grounds as to why extended period can be invoked in such circumstances. In these circumstances, we find that the extended period of limitation cannot be invoked and consequently the demand of duty and penalty cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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