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2008 (5) TMI 196 - AT - Service TaxERP Implementation Services - Adaptation, upgradation, enhancement and other similar services related to IT software can be considered under the category of Information Technology Software Service - Moreover, in terms of the CESTAT s Final Order of this Bench, similar services in the case of SAP India were classified under the category of Consulting Engineer Service - Prima facie, therefore, the appellants have made a strong case in their favour hence stay is granted
Issues: Classification of services under Service Tax - Management Consultancy Service vs. ERP Implementation Services vs. Information Technology Software Service.
In this case, the appellants were required to pre-deposit a specific amount of Service Tax, along with penalties under various sections. The appellant argued that the services provided should be classified as "ERP Implementation Services" rather than "Management Consultancy Service" as determined by the Revenue. The advocate cited relevant case laws to support this argument and highlighted that the services fall under "Information Technology Software service," introduced after the period in question. The Adjudicating Authority justified the classification as "Management Consultant Services." The appellant also referred to a previous decision involving SAP India Systems to support their position. The Revenue contended that the previous CESTAT's Final Order cited by the appellant was not applicable to the current case and requested the Bench to enforce the pre-deposits. Upon careful consideration, the Bench analyzed the definition of Information Technology Software Service and noted that services related to IT software, including adaptation, upgradation, and implementation, could fall under this category. Referring to the previous CESTAT's Final Order involving SAP India, the Bench found that similar services were classified as "Consulting Engineer Service" and were exempted during the relevant period. Consequently, the Bench acknowledged the strong case presented by the appellants and granted a complete waiver of the pre-deposits of duty and penalties until the appeal's final decision. All recovery proceedings were stayed, and the appeal was scheduled for final hearing on 20th August 2008.
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