CESTAT allowed the appeal and set aside the impugned service-tax...

CESTAT allowed the appeal and set aside the impugned service-tax demand and penalty. The Tribunal found the adjudicating authority failed to furnish reasoned findings that the appellant's receipts of anti-virus software from foreign suppliers constituted taxable ITSS services or involved transfer of a right to use; the contractual matrix showed no EULA between the appellant and foreign vendors and the right to use was conferred to end-users. Precedents relied upon by revenue were distinguished on the facts. Given admitted over-payment resulting in revenue neutrality and absence of deliberate suppression or mala fides, the extended limitation period and imposition of penalty were held inapplicable.

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