2010 (12) TMI 101

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....g the records and hearing both sides, I note that the short question arising for consideration in this case is whether the service rendered by the appellant to their clients (banks) during the period of dispute (09/07/2004 to 30/04/2006) is taxable under the head management maintenance or repair service in terms of Section 65 (105) (zzg) of the Finance Act, 1994.  The lower authorities have d....

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....ther provisions of this contract and has submitted that the AMC covered nothing but information technology service to be rendered by the appellant to their clients (banks) in respect of the application software already licensed and installed in the system owned by the bank.  It is submitted that the appellant was not liable to pay service tax on any information technology service during the p....

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.... service is very much applicable to such software also 2. After considering the submissions, I find that it is not in dispute that the activity undertaken by the appellant for the benefit of their clients (banks) during the period of dispute was only maintenance of application software already licensed and installed in the computer systems of the banks.  In the case of SAP India Pvt Ltd. (....

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.... in Tata Consultancy Service (supra) is applicable to such software. Such software, no doubt, involves intellectual property.  Application software also involves this property. However, the legislature in its wisdom has  chosen to differentiate application software from operating software (computer software) for  the purpose of levy of service tax and, accordingly, the maintenance o....