2017 (10) TMI 1192

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....nd repair service of software is exempted vide Notification 20/2003-ST dated 21.08.2003 as also by Notification 4/99-ST dated 28.02.1999. He pointed out that later on vide Circular no. 81/2/2005-ST dated 07.10.2005, CBEC clarified that in view of the Apex Court s decision in the case of Tata Consultancy Services - 2004 (174) ELT 22 (SC) software is goods, therefore repairs and maintenance of software is nothing but repairs and maintenance of goods and same would be leviable to service tax. This view was once again clarified vide Circular no.256/1/2006-CX.4 dated 07.03.2006 wherein it was clarified that service tax would be leviable on maintenance and repair w.e.f. 09.07.2004 i.e. Notification 20/2003-ST was rescinded. 3. Ld. CA further s....

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....ice is liable to service tax. He argued that the invocation of extended period is not justified. 4. Ld. AR relies on the impugned order. He particularly reiterated the argument made in various circulars of the Board. 5. We have gone through the rival submissions. We find that the CBEC vide circular no.70/19/03-ST dated 17.12.2003 had clarified as follows:- "Subject : Clarification on the taxability of maintenance of Computer Software - Regarding. An issue has been raised whether the organisations who are engaged in design, development are maintenance of Software and enter into Annual Maintenance contracts for maintenance of their software, are exempt from Service Tax or not. "Maintenance or repair means any ....

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.... issue of Circular no.81/2/2005-ST dated 07.10.2005 and Circular no.256/1/2006-CX.4 dated 07.03.2006. In these circular, following was clarified:- "Circular no. 81/2/2005-ST dated 07.10.2005 Subject : Leviability of Service tax on maintenance or repair of software ... ... 4. Any service provided to a customer by any person in relation to maintenance or repair is leviable to service tax under section 65(105) (zzg) of the Finance Act, 1994. "Maintenance or repair is defined under section 65(64) of the said Act. Accordingly, maintenance or repair" means any service provided in relation to maintenance or repair or servicing of any goods or equipment. 5. Software, being goods, any service in ....