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TMI Blog2014 (11) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... volved in DSC and SSLC and would cover under IT services. The levy of service tax is not dependent on the fact thereof who retained the source code. But, there is some force in the submission of the learned Advocate in respect of demand of tax on SSLC under BSS and DCS Services. The applicant failed to make out a strong prima facie case for waiver of pre-deposit of entire amount of dues - Partial stay granted. - ST/40054/2013, ST/42388/2013 - Misc. Order Nos. 41316-41317/2014 - Dated:- 17-6-2014 - P K Das and R Periasami, JJ. For the Appellant : Mr Natarajan, Adv. For the Respondent : Ms Indira Sisupal, AC (AR) JUDGEMENT Per: P K Das: The relevant facts of the case, in brief, are that the applicants are providers of taxable services like On-line information and Database access/retrieval, Internet Cafe, Leased circuit services, Franchise Services, Business Auxiliary Services, Advertisement, Software development, e-learning etc., This dispute relates to the demand of service tax on Digital Signature Certificate (DSC) and Secure Socket Layer Certification (SSLC) services. Two show cause notices dated 20.10.11 and 22.05.13 were issued proposing demand of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SSLC under BSS and DCS . 3.2 The only reason placed by the adjudicating authority is that there is no Board's letter in the case of SSLC, is not sustainable for the reason that SSLC is a voluntary activity and no Govt. license is required for certification. 3.3 Further, the adjudicating authority has accepted both the activities are similar in nature and confirmed the demand of tax under the IT services without considering Board's letter. It is seen from the said letter that the licensing authorities have stated that no IT related activity is involved in the present case. The demand of tax is barred by limitation. The applicants provided all the information in the year 2008 itself. So, the demand of duty vide show cause notice dated 20.10.11 is partly barred by limitation. 4. Regarding the demand of tax on IT service, it is submitted that the applicants entered into agreement with M/s. Verisign, who developed the IT software, which were used by the applicants. It is submitted that these activities would not cover under the definition of IT software services under Section 65(105)(zzzza). The Ld. Advocate further submits that none of the clause of the said Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n form along with required credentials as required under the IT Act. Upon verification of such credentials, the Taxpayer uploads the information in the software platform made available by Verisign, which extracts the relevant information and creates the required DSC by digitally signing the subscriber's public key with the CA's private key. The customer is informed through email about the issue of DSC and the customer should visit the link provided in the email, access the DSC and install the same in his customer. DSC, once issued, would be valid during the validity period prescribed therein and can be renewed once it expires. Sify charges the customer for the above process. 6. Secure Socket Layer Certificate (SSLC) 6.1. SSLC is a security protocol feature intended to provide secure transmission of data between the client and the server when exchanging information through the internet. For example, if a customer is making an online purchase by visiting a website, the customer shall be assured that he is transacting with the relevant web server and the transaction has been protected. SSLC helps in setting up a encrypted channel between a client server over HTTP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cialist in Public Key Infrastructure (PKI). PKI is used for authentication and data integrity and data privacy by digital signatures and encryption and decryption of data. SIFY provides Networking Services and IT Services to its customers. IT services comprises of data centre, managed services and security solutions to customers. SIFY is a licensed certifying Authority (by Controller of Certifying Authorities, Govt. of India under IT Act, 2000) and is involved in providing PKI Solutions under the brand of Safe Scrypt . SIFY is an affiliate of Veri Sign (Certifying Authority), a Global Certifying Authority. SIFY can issue certificates globally. SIFY uses software platform to provide digital certificate life cycle management service to their customers. This software platform was installed at SIFY by Veri Sign around the year 2002. We use this software platform to provide digital certificates to end entities viz. individual subscribers/Web servers. We in turn pay royalty to Veri Sign for using this platform to issue every DSC/SSL certificates. We also pay AMC to Veri Sign for maintenance of the platform. 10. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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