Service Tax Exemption Granted for Business Transfer in Slump Sale as Independent Part of Business Under Income Tax Act.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The case pertains to service tax liability arising from the sale/transfer of a business as a going concern by way of slump sale under the Income Tax Act, 1961. The issue was whether such transfer qualifies for exemption from service tax under Sr. No. 37 of Notification No. 25/2012-ST. The appellant had transferred an exclusive part of their software development business, which was earlier providing software solutions exclusively for the buyer (M/s ZeroChaos Workforce Solutions Private Limited), as a going concern. The Revenue denied the exemption, contending that the transferred business was not an independent part of the appellant's overall business. However, the CESTAT held that since the appellant had transferred an exclusive part of the.........