TaxTMI 
TaxTMI 
2015 (5) TMI 884
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.... did not impose any penalty under Section 76, 77 and 78 of the Finance Act, 1994. 2. The facts are that the appellant are engaged in providing service relating to 'maintenance or repair' service of computer software. A show-cause notice was issued on 2.1.2007 demanding Service Tax for the above mentioned period. The demand was confirmed, however, the penalties were not imposed. 3. Heard both sides. 4. The learned Counsel for the appellant states that in 2003, the Business Auxiliary Services definition specifically excluded maintenance of software in the explanation to the definition. CBE&C issued a Circular on 17.12.2003 clarifying that tax on 'maintenance or repair' of software is not leviable because it neither falls un....
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....ance Act, 1994 as there was reasonable cause for non-payment of tax. 5. The learned A.R. reiterates the findings of the Commissioner. He drew our attention to the Notification No. 20/03 dated 21.8.2003 which exempted the taxable service provided in relation to maintenance or repair of computer software, computer peripherals. This notification was rescinded on 9.7.2004 and therefore, Service Tax became payable w.e.f. 9.7.2004. According to him since the TCS judgment held that the term 'goods' includes 'software', therefore, Service Tax is payable under the un-amended definition of maintenance or repair service. 6. We have considered the rival contentions. We have seen the judgment (supra) of Hon'ble Madras High Court in....
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....ttance, evaluation of prospective customer and public relation services, and includes services as a commission agent, but does not include any information technology service. Explanation.-- For the removal of doubts, it is hereby declared that for the purposes of this clause "information technology service" means any service in relation to designing, developing or maintaining of computer software, or computerised data processing or system networking, or any other service primarily in relation to operation of co9mputer systems." 7. That was also followed in the Finance Act, 2004, with effect from 10.9.2004 and that status has been followed till the Finance Act, 2007, as stated above. Therefore, the liability for payment of service charge f....
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....ellants provided consultancy services including computer consultancy services. As part of their business they prepared and loaded on customers' computers custom-made software ("uncanned software") and also sold computer software packages off the shelf ("canned software"). The canned software packages were of the ownership of companies/persons who had developed those software. The appellants were licensees with permission to sub-license those packages to others. The canned software programs were programs like Oracle, Lotus, Master Key, N-Export, Unigraphics, etc. The question raised in this appeal was whether the canned software sold by the appellants could be termed as "goods" and as such was assessable to sales tax under the Andhra Pr....