9911796707
TMI Blog2018 (8) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... eir holding company for maintenance of SAP computer software system. The revenue authorities were of the view that the amounts paid by the appellant under this contract to the holding company are liable for service tax under reverse charge mechanism under the category of maintenance or repair services. Appellant contested the show cause notice before the adjudicating authority stating that for the period 01.01.2005 to 18.04.2006, the law is settled as to reverse charge mechanism cannot be applied as provisions of Sec.66A of the Finance Act, 1994 came into statute from 18.04.2006; for the period 19.04.2006 to 31.05.2007, the demand is not sustainable as the software which were maintained by the head office were not goods till explanation to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta Consultancy Services [2004 (178) ELT 22 (SC)] have held that the computer software either canned or in other form are goods and are liable to Sales Tax. He would counter the arguments of the learned counsel that Board's clarification issued on 20.02.2007 by TRU Circular No.334/1/2007-TRU is only clarifying issue of development of computer software will not fall under maintenance or repairs of computer software. 5. On careful consideration of submissions made on both sides and perusal of records, we find that the period of tax liability arisen in this case is correctly stated as 01.01.2005 to 31.05.2007. The demand is based on reverse charge mechanism for the amounts paid by the appellant to their holding company. 6. As regards the subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by adjudicating authority is that software maintenance is also a maintenance of goods. For this purposes, he relied upon the decisions of the Apex Court in the case of Tata Consultancy Services (supra). We would find from the records that the appellant has been citing the TRU Circular No.334/1/2007- TRU dated 20.02.2007 which specifically states as under: "Management, Maintenance or Repair Service: Section 65(64) amended to clarify that "goods" for the purpose of this service includes computer software. Consequently, maintenance or repair of computer software will be leviable to Service Tax under this category. It may be noted that development of computer software is distinct from maintenance or repair of computer software and development ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade taxable. Taking all factors into consideration, the Tribunal has held that there is no retrospective application by insertion of the explanation. The period under dispute in the present case is from 9th July, 2004 to 6th October, 2005." 9. It can be seen from the above reproduced relevant Para, the explanation which was added to bring into tax net, the computer software as goods was held to be effective from 01.06.2007 only. In the case in hand, it is submitted and not disputed by the revenue that from 01.06.2007 appellant has started discharging appropriate Service Tax liability on the payments made by them under reverse charge mechanism. 10. In view of the foregoing, we hold that period post 19.04.2006 to 31.05.2007; the demands con ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
