2015 (4) TMI 321

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....ices. The impugned demand confirmed by the said Order-in-Original alongwith interest and penalties is segmented as under: S.No. Category Period Service Tax 1. Outstanding Balance regarding Debtors/Creditors for service provided/received 01.04.2008-31.03.2009 75,05,21,939 2. Franchise Service (Reverse Charge) 18.04.2006-31.03.2009 10,50,77,665 3. Management, Maintenance or Repair 09.07.2004-30.09.2005 2,90,25,359 4. Commercial Coaching or Training 09.07.2004-31.03.2009 1,74,93,813 5. Management, Maintenance or Repair from Siemens, USA (Reverse Charge) 18.04.2006-31.03.2008 1,38,78,728 6. Banking and Other Financial Service (Reverse Charge) 18.04.2006-31.03.2009 ....

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....emand under Franchise Service on which they have already paid service tax; iii. Provisions created for expenses, statutory liabilities, amounts payable to employees etc.. c. The outstanding debtors balance includes: i. Debtors pertaining to transactions with overseas customers for exports; ii. Debtors pertaining to repairs, maintenance and training services provided by the appellants on which service tax was already paid. iii. Debtors pertaining to sale of goods by the appellants on which sales tax was being paid; iv. Provisions created for bad debts, accounting code forming part of loans & advances, amount receivable from employees, audit adjustments entries etc. which do not fall within service tax net. d. The service....

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....hat the appellant have made out a case for waiver of the pre-deposit of this component of the impugned demand. 4. As regards the demand pertaining to Franchise Service, the appellants have contended that: (i) They entered into Software Duplication, Reproduction and Distribution Agreement dated 01.12.2006 with Siemens, USA wherein they were granted right to duplicate, reproduce, distribute and sublicense the softwares and were paying royalty for the said rights. On this the impugned order has confirmed service tax under Franchise Service [Section 65(47) read with 65(105)(zze) of the Finance Act, 1994]. (ii) The rights granted under the agreement are not representational right. Therefore, the transaction is not classifiable under Fra....

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....ted Enterprises. The impugned order observed that soft ware on medium being goods , as held in the case of Tata Consultancy Services V. State of Appellant, 2004 (178) ELT 22 (SC) they are liable to pay service tax on the payments received/ made but upgradation/enhancement of the softwares is held to be covered under Information Technology Software Service and not under Management, Maintenance or Repair Service as per the judgment in the case of SAP India Private Limited Vs. CCE, 2011 (21) STR 303 (Tri-Bang) and Kasturi and Sons Limited V. UOI, 2011 (22) STR 129 (Mad.) wherein decision of Tata Consultancy Services (supra) was distinguished. (ii) They started paying service tax under Management, Maintenance or Repair Service w.e.f. 01.10.2....