2017 (12) TMI 1190

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....oftware but are not discharging service tax liability issued show cause notice dt. 06.07.2012. It was alleged that as found from the statement of director Shri Lodha they have collected service tax amounting to Rs. 2,87,07,126/- whereas the sale of packed software is not liable to tax under the category of information technology software. That the Appellant has claimed that the software packages are purchased from different suppliers who charged service tax in their invoices and hence they claimed credit of the same. It was alleged that the Appellant is not registered under the category of Information technology service and did not file service tax return to claim credit. They are merely trader/ dealer and cannot claim cenvat credit. They h....

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.... of computer operating system software products of Microsoft, Symantec, Linux etc. which is into three categories (i) Software in CD/DVD (ii) Multiple User Software/Paper Licence and (iii) Internet download. That in their transactions the copyright was not transferred and only the contents of the data stored in software was transferred. The information Technology software was subjected to service tax w.e.f. from 16.05.2008. In case of Software Dealer Association Vs. UOI - 2010 (20) TSR 289 (Mad), the Hon'ble High Court upheld the levy of service tax. He also relied upon letter D.O.F No. 334/1/2008 TRU dt. 29.02.2008 Para No. 4.1.3 that their activity was taxable. That since they have received bills charging service tax from their vendors th....

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....tes the findings of the impugned order. 5. We have carefully considered the submission made by both sides and perused the records. We find that the demand has been confirmed against the Appellant on the ground that during impugned period 01.04.2006 to 15.05.2008 and 27.02.2010 to 31.03.2011 their services were not taxable and hence the amount recovered from customers representing service tax is liable to be paid in terms of Section 73A (2). Also that during the period 16.05.2008 to 26.02.2010 the services was taxable therefore they are liable to pay tax. We find that in SCN issued to Appellant the demand was proposed on the ground that since their services were not taxable hence the amount of Rs. 2,87,07,126/- recovered by them from thei....