2008 (1) TMI 116

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....lant undertakes training customers in software. Revenue proceeded against the appellant on the ground that the testing of software is liable to Service Tax under the category of "Technical Inspection & Certification Service" as defined in Section 65(108) of the Finance Act. It was also alleged that the appellant was rendering training services, which is liable for Service Tax under the category of  "Commercial Training and Coaching Service". The Commissioner, after giving them an opportunity of personal hearing, confirmed the Service Tax to the tune of Rs. 52,84,956/- under Section 73 of the Finance Act, 1994 for the period from  July, 2003 to September, 2005. He also imposed penalties of (i)Rs. 200/- per day under Section 76; (ii....

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....rity, in his order, has relied on the Apex Court's decision in the case of Tata Consultancy Services Vs. State of Andhra Pradesh - 2004 (178) ELT 22(SC) which held that software is 'goods'. Since software is 'goods', after going through the definition of Technical Inspection & Certification service in Section 65(108), which includes the inspection and certification in respect of goods, the Original Authority has come to the conclusion that since the appellant is developing software and which is being simultaneously tested, this process would come under Technical Inspection & Certification Services. The application of the above case-law in this case, according to the learned Advocate, is not correct because the Hon'bl....

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....above category. 5.2. The learned Advocate further urged that the demands are time barred because there is no evidence that the appellant had evaded duty by suppressing facts. He pointed out that there was no certainty and clarity in the Service Tax law relating to software services. The Tribunal and Courts at various stages have taken divergent and contrary views. In these circumstances, there was lot of confusion and with regard to the taxability in such circumstances, he said that the invocation of longer period is not sustainable. 6.  The learned SDR pointed out that since the software is configured as 'goods' in the light of the Apex Court's decision in the case of Tata Consultancy Services (cited supra) and going....