2024 (9) TMI 1601 - SCH - Service Tax

Levy of service tax - Business Auxiliary Services or not - Software Activation Charges - whole case has been made by the Department on the basis of balance sheet which shows a separate income under head software activation charges - time limitation - low tax effect by bearing in mind Circular dated 06.08.2024 issued by Ministry of Finance, Government of India - it was held by CESTAT that 'the amount collected by the Appellant from their customers against as activation charges of equipment/ software features are covered under the activity of sales of goods and not covered under the provisions of Service as defined in the Act.' HELD THAT - The civil appeal is dismissed owing to low tax effect.

Summary

The Supreme Court of India dismissed the civil appeal due to low tax effect, in accordance with a circular issued by the Ministry of Finance. The appellant's counsel submitted that the appeal would not survive for further consideration. Pending applications were also disposed of.