TaxTMI 
TaxTMI 
2022 (3) TMI 1313
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....riods April 2009 to March 2011. 2. The respondent herein is a dealer registered under the provisions of the Act and is engaged in the trading of computer software and hardware. The respondent is a channel partner for various software companies such as Microsoft, McAfee etc. During the tax periods in question, the respondent had effected sales of software licences and had paid tax under the provisions of the Act. 3. When the case was taken up for audit, the prescribed authority has noticed that no tax was paid on the turnover relating to the renewal of software licences. Accordingly, after issuance of notice and upon consideration of the respondent's reply, the respondent was reassessed to tax under Section 39(1) of the Act levying tax on ....
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.... same is essential which permits the customer to use the software for a new extended period of time. The Tribunal grossly erred in holding that the renewal of software licence is merely a service and not transfer of goods. Thus, the learned Additional Government Advocate argued that the renewal of software licence is exigible to levy of sales tax under the provisions of the Act as deemed sales i.e., transfer of right to use the goods. 5. Learned counsel appearing for the respondent - assessee justifying the impugned order submitted that the transaction of renewal of software licence is assessed to service tax under the Service Tax Act and the service tax liability has been discharged on this transaction by the assessee. As such, the said t....
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....pies of the service tax invoices and half yearly service tax returns filed by the respondent before the Tribunal are considered and some of the sample copies of the purchase orders/service tax invoices relating to the transactions are extracted by the Tribunal. 9. Section 65 (105)(zzzze) of the Finance Act, 1994, defines information technology services, which includes adaptation, upgradation, enhancement, implementation and other similar services related to information technology software. The word 'service' is defined under Section 65-B(44) of the Finance Act, 1994, which has come into effect from 1.7.2012. In terms of the said provision, any activity which constitutes merely transfer, delivery or supply of any goods which is deemed to be....
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..... They might be overlapping; but the overlapping must be in law. The same transaction may involve two or more taxable events in its different aspects. But the fact that there is overlapping does not detract from the distinctiveness of the aspects". No one denies the legislative competence of States to levy sales tax on sales provided that the necessary concomitants of a sale are present in the transaction and the sale is distinctly discernible in the transaction. This does not however allow State to entrench upon the Union list and tax services by including the cost of such service in the value of the goods. Even in those composite contracts which are by legal fiction deemed to be divisible under Art. 366(29A), the value of the goods invo....