2015 (3) TMI 558

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the purchase and cancellation entries were made within the time limit for making payment, the asessee was not liable to make any payments against these defective softwares and the claim of the assessee in this regard is acceptable - demand of tax is not sustainable. Accordingly, we set aside the impugned order to the extent of demand of tax along with interest and penalty - Decided in favour of a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 65 (105) (zzzze) of the Finance Act, 1994. There was a demand of service tax on two counts. First is whether the activity of stock transferring imported software to their own use is taxable service and attracts levy of service tax. The other one is whether non-payment of service tax on the importation of service which was later returned as defective to the foreign service provider is correct and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... es and on perusal of records, we find that on earlier occasion, the learned counsel on behalf of the appellant submitted that they have imported software from M/s. Microsoft. It is also submitted that certain software are found to be defective which returned to them and to that effect no amount was paid by them. He further submits that there is no actual payment made by the appellant but only book .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... m of the assessee in this regard is acceptable. The relevant portion of the said letter is reproduced below :- 3. M/s.Wipro Limited was under an obligation to make payments to Microsoft towards import of softwares within 60 days from the date mentioned in the Microsoft Invoices. During the impugned period i.e. from November 2008 to September 2009 all the rejection which were returned to Micros .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ersal entry. 5. Since the purchase and cancellation entries were made within the time limit for making payment, the asessee was not liable to make any payments against these defective softwares and the claim of the assessee in this regard is acceptable. 6. In view of the above letter, we find that the demand of tax is not sustainable. Accordingly, we set aside the impugned order to the exte .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X