Imported Software Sale: No Service Tax Due After VAT Paid; Penalty Dropped Due to No Guilty Mind in Distributor's Case.

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....Service tax liability on sale of imported tally software was disputed. Appellant was a distributor marketing and installing the software on behalf of the seller holding intellectual property rights, with only the product being transferred. Demand of duty by invoking extended period of limitation from 16.05.2008 to 30.09.2008 was held unsustainable as penalty u/s 78 was dropped by the Appellate authority on grounds of absence of guilty mind, and this finding was not challenged by the revenue. The imported and sold software was an import and sale of goods, not exigible to service tax as per Supreme Court's judgment in Tata Consultancy Services case. Regarding upgradation of software, as per Quick Heal Technologies Ltd case, once lumpsum was c.........