TaxTMI 
TaxTMI 
2020 (10) TMI 378
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....section 78 of Finance Act, 1994 and Rs.10,000 under section 77 of Finance Act, 1994 vide order-in-original no. 24/STC-I/SKS/13-14 dated 29th July 2013 of Commissioner of Service Tax-I, Mumbai, is limited to the finding therein that the impugned activity conforms to section 65(105)(zh) of Finance Act, 1994 and not to that in section 65(105)(zzzze) of Finance Act, 1994 as claimed by the assessee. It is common ground that the appellant is a recipient of service, provided by M/s Radixx Solutions International Inc., USA, to whom the first payment under the contract was made on 27th June 2006 and that the appellant had discharged tax liability of Rs.28,01,753 on payments effected after 16th May 2008 with the incorporation of 'information technolo....
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....inguished the said product from that involved in the decision of the Tribunal in Jet Airways India Ltd v. Commissioner [2016 (44) STR 465 (Tri-Mum)] as control over the data remained with the appellant and was accessed, as well as used, primarily by their employees. 3. Referring to the findings of the impugned order that '4.6...... What exactly is relevant is what is the outcome of the service provided by Radiix. For providing any Online Data Access or Retrieval process, there would definitely be some software and some operating system and both need be worked on some server. The particular software appears to be the property of Radiix and Radiix allow them to use by their customer. It is very important to understand that Radiix is not on....
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....thereafter, the manipulated for management of the business of the appellant. Clarifying that the payments are also effected on per transaction basis, he contends that the activity is no different from that which was disputed in Jet Airways India Ltd v. Commissioner of Service Tax, Mumbai [2016-TIOL-2072-CESTAT-MUM] and in British Airways v. Commissioner of Central Excise (Adjudication) [2014-TIOL-979-CESTAT-DEL] and, the demand therein having been set aside not on the ground of not having been received in India but on the bar of limitation, the impugned order must be upheld. According to him, the voluntary payment for part of the period before assessing themselves as liable to tax under section 65 (105) (zzzze) of Finance Act, 1994 establis....
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....is 'the Radixx proprietary software system, incorporating the Radixx Software, for use in providing call center and Internet-based consumer reservation and information management services for travel -related business...' and the hosting of service is to be the responsibility of the licensor of the software. It is also clear from the appended schedules and exhibits that annual payments are to be effected on the basis of 'passenger segment' as the variable. 6. As claimed on behalf of the appellant, it is quite probable that the licensed software is deployed across the functional and operational spread of the organisation. Nevertheless, the airline industry is entirely dependent on passenger/cargo traffic and it is the booking/reservation ....
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....unal that '10.7 In our considered view, we have to read the order holistically, i.e. British Airways case; on merit is against the appellant in this case while on the issue of revenue neutrality the order of British Airways supports appellant's case. The ratio of the Bench applies clearly to the case in hand accordingly respectfully following to ratio we have to hold that the appellant has made out a case in their favour on the question of revenue neutrality. In view of a direct decision on the self same issue, we are not recording any findings on the other case laws relied upon by both sides on the question of revenue neutrality....' in re Jet Airways India Ltd is the ground cited by Learned Chartered Accountant for extending the same b....
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....n section 65(105)(zzzza) of Finance Act, 1994, is ample evidence of their diligence in discharge of tax liability to exclude the possibility of having contemplated evasion of tax. In terms of the activity that is sought to be taxed by these two entries, the connection with electronic data processing is unmistakable. Considering the mechanism incorporated in the two definitions to render the activity functional, the minor differences between them should have led to a similar speculative reasoning on the part of the assessee and the deliberate discard of applicability after initial discharge of tax liability should have been justified in the proceedings instead of relying upon decisions of the Tribunal rendered subsequent to the period of dis....