2013 (12) TMI 791

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....er software for their clients located in India and abroad during the period 01/07/2003 to 31/03/2008. However, they did not take any service tax registration nor did they discharge any service tax liability. Accordingly, two show-cause notices were issued to the appellant, one dated 20/10/2008 demanding service tax of Rs.6,27,69,689/- for the period July 2007 to March 2008 and another notice dated Feb 2008 demanding service tax of Rs.15,12,19,673/- for the period 01/07/2003 to 31/03/2007. The notices proposed to recover interest on the above demands apart from imposing penalties. Both these notices were adjudicated by the impugned order and the Ld. Commissioner dropped the demands on the ground that testing IT software was not part of the t....

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....16/05/2008 under the category of technical testing and analysis service and therefore prior to that date the said activity was not leviable to service tax. He also submits that testing of software is integral to and forming part of software design and development activity and IT software services were brought under the tax net with effect from 16/05/2008 and therefore, the adjudicating authority has correctly dropped the demand. He also relies on the decision of this Tribunal in the case of Stag Software Pvt. Ltd., (cited supra) and Relq Software Pvt. Ltd., Vs. CST, Bangalore, reported in 2009 (14) STR 779 and the decision of the Hon'ble High Court of Karnataka in the same case reported in 2011 (23) STR 449 (Kar). Accordingly, he prays for ....

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....ifically stated that service provided in relation to information technology (IT) software for use in the course or furtherance, of business or commerce has been specifically included in the list of taxable service vide Section 65 (105) (zzzze). In para 4.1.7, it has been stated that following consequential amendments in other taxable services are also being made, namely, to include testing and analysis of IT software services under technical testing and analysis service (Section 65(105) (zzh). Similar amendments were made in the scope of business auxiliary service, technical inspection and certification service, management, maintenance or repair of properties, consulting engineer's service, etc. to bring activities relating to IT software i....