TMI Blog2019 (2) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... e maintenance of software is also a part of computer systems and therefore, would be covered by the exemption Notification. The above Notification was later rescinded by Notification No. 07/2004 dated 09.07.2004. Although the Notification rescinded the above exemption Notification, the said services were not brought into the levy of service tax by the specific Notification - Later, Circular No. 81/2/2005-ST dated 07.10.2005 clarified that maintenance or repair or servicing of software is leviable to service tax. There was much confusion as to whether Maintenance and Repair of computer software is subject to levy of service tax during the disputed period. However, taking note of the fact that the Circular dated 07.10.2005 has been quashe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03-ST dated 21.08.2003 which exempted service tax on maintenance of software. Thereafter, Notification No. 07/2004-ST dated 09.07.2004 was issued rescinding the earlier Notification No. 20/2003-ST. Therefore, according to the Department, maintenance and repair of computer software became taxable after 09.07.2004. 2.2 A Show Cause Notice was issued proposing to demand service tax along with interest and also for imposing penalties. After due process of law, the Original Authority confirmed the demand of ₹ 37,84,409/- along with interest and imposed equal penalty. In appeal, the Commissioner (Appeals) set aside the same. Hence, the Department is now before the Tribunal. 3.1 Ld. AR Shri. K. Veerabhadra Reddy appearing on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a part of computer systems and therefore, would be covered by the exemption Notification. The above Notification was later rescinded by Notification No. 07/2004 dated 09.07.2004. Although the Notification rescinded the above exemption Notification, the said services were not brought into the levy of service tax by the specific Notification. 5.2 Later, Circular No. 81/2/2005-ST dated 07.10.2005 clarified that maintenance or repair or servicing of software is leviable to service tax. This was pursuant to the decision of the Hon ble Supreme Court in M/s. Tata Consultancy Services Vs. State of Andhra Pradesh reported in 2004-TIOL-87-SC-CT-LB. The Hon ble High Court of Madras in the case of M/s. Kasthuri Sons Ltd. Vs. U.O.I. reported ..... X X X X Extracts X X X X X X X X Extracts X X X X
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