9911796707
TMI Blog2014 (10) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... r ‘Information Technology Software Services' was introduced in the statute book. Therefore, we agree with the appellant's contention that the services received by the appellant fall within the category of ‘Information Technology Services' and therefore, would not be liable to service tax for the period to 16/05/2008. On perusal of the agreement, it is seen that there are only two parties involved SKF, Sweden and SKF, India and there is no third party involved. Further, the service received by the SKF India, the appellant herein, is for its own use and not for providing any service to any other party. Therefore, the argument of the Revenue that the services received would fall within the ambit of ‘customer care' is totally bereft of any l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... KF, Sweden and the second part of the demand consist of an amount of ₹ 1,63,04,213/- is in respect of various expenditure incurred by the appellant towards foreign currency purchase, professional management fees, group management programmes, engineering software support services, etc. Both these demands have been put under one category of Business Auxiliary Services'. While the show cause notice does not specify under which clause of Business Auxiliary Service' the aforesaid services would fall, the adjudicating authority has in the order grouped them under the category of customer care services'. The learned consultant has submitted a copy of the agreement entered into with SKF, Sweden in respect of the provision of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m, specifications for a database design, guidance and assistance during the start-up phase of a new system, specifications to secure a database, advice on proprietary information technology software, (v) acquiring the right to use information technology software for commercial exploitation including right to reproduce, distribute and sell information technology software and right to use software components for the creation of and inclusion in other information technology software products, (vi) providing the right to use information technology software supplied electronically; 3.1 From a reading of the above definition it would be amply clear that services received by the appellant from SKF, Sweden would fall squarely withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holding the impugned order. 5. We have carefully considered the submissions made by both the sides. From a perusal of the agreement entered into between the appellant and SKF, Sweden, it is clear that the said agreement provided for development, maintenance and installation of software systems by the foreign entity to the appellant and supply of information, data, providing training, etc. In the IT software field, Information Technology Software service was specifically excluded from the scope of Business Auxiliary Services' and the same was made taxable only w.e.f. 16/05/2008 when a separate entry for Information Technology Software Services' was introduced in the statute book. Therefore, we agree with the appellant's cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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