2025 (9) TMI 1161 - SCH - Service Tax

Appeal dismissed: procurement and affixation of certificates/labels on manufactured thin clients constitutes sale, not a service

Commissioner Of Service Tax (LTU) Versus M/s VXL Instruments Limited.

The SC upheld the CESTAT Bengaluru bench's determination that the entire transaction - procurement of certificates/labels on high-seas-sale basis and ... Nature of activity - sale or service - Classification of services - purchase/import of Certificate of Authenticity(COA)/ stickers/labels on high sea sale basis from M/s Priya Ltd., later affixed on the manufactured ‘Thin Clients’ already installed with MS software embedded system procured from local Microsoft authorized distributors - it was held by CESTAT that 'There are merit in the contention of the learned senior advocate for the appellant that the whole transaction/activity including the installation of the software and later affixing stickers / labels to the Thin Clients procured / purchased on HSS basis from M/s. Priya Limited are in the nature of ‘sale’ and not service.' HELD THAT:- There are no good reason to interfere with the impugned order passed by the Customs, Excise and Service Tax Appellate Tribunal, Bengaluru, Regional Bench. Appeal dismissed. 'Delay condoned.' After hearing counsel and reviewing the materials on record, the Court found 'no good reason to interfere with the impugned order passed by the Customs, Excise and Service Tax Appellate Tribunal, Bengaluru, Regional Bench.' The Civil Appeal was therefore dismissed: 'The Civil Appeal is, accordingly, dismissed.' All pending applications were directed to stand disposed of. The disposition reflects deference to the Tribunal's order based on the appellate record and the absence of grounds warranting interference.