2019 (5) TMI 716

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... such activities for the period 9-7-2004 to 30-8-2005. Notification No. 20/2003-S.T., dated 21-8-2003 exempted taxable services in relation to Maintenance or Repair of Computer, Computer System etc. However, the said notification was withdrawn vide Notification No. 7/2004-S.T., dated 9-7-2004. Consequently, the said service of Maintenance or Repair of Software became liable to service tax. It appeared, therefore, that appellants are liable to pay Service Tax for the said activity from the period 9-7-2004 to 30-8-2005. It was also seen that for the quarter ending Jun.'07, appellants had received an amount of Rs. 3,32,080/- as advance from the customers but had not discharged Service Tax on such amount. Further verification revealed that ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rescinded the earlier Notification No. 20/2003. The Board vide Circular dated 7-10-2005 clarified Maintenance or Repair of Software and Computer is chargeable to Service Tax. This clarification was given pursuant to the decision of the Hon'ble Apex Court in the case of M/s. Tata Consultancy Services reported in 2004-TIOL-87-SC-CT-LB = 2001 (129) E.L.T. 3 (S.C.), wherein it was held that software in media are "goods". The services are, therefore, taxable during the disputed period. The appellants failed to pay Service Tax and had suppressed facts with intent to evade payment of Service Tax. Therefore, the extended period has been rightly invoked and the conclusion of Commissioner (Appeals) that there is no suppression of facts on the par....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... reported in 2011 (22) S.T.R. 129 (Mad.) struck down the Circular dated 7-10-2005, which stated that Maintenance or Repair Services of Software is leviable to Service Tax with effect from 9-7-2004. Thereafter, the Board had issued a Circular No. F.No. 256/1/2006-CX., dated 7-3-2006. In this, it was again stated that the activity is subject to levy of service tax from 9-7-2004. This is the date on which Notification No. 20/2003 was withdrawn. The Hon'ble High Court in the case of M/s. Kastury & Sons (supra) has held that Service Tax cannot be levied by issuing a circular and, therefore, has quashed the circular. From the above, it is very much clear that during the disputed period that there was utter confusion with respect to levy of Se....