TaxTMI 
TaxTMI 
2026 (3) TMI 911
X X X X Extracts X X X X
X X X X Extracts X X X X
....inst Order-in-Original No. 14/2012 dated 18.05.2012 passed by Commissioner of Central Excise Bangalore-III, Commissionerate. 2. Appellant has also moved a miscellaneous application for inclusion of additional submissions in their grounds of appeal, which is accepted and taken on record. The Miscellaneous Application is allowed and appeal is taken up for hearing and disposal. 3. Briefly the facts are that the appellant is 100% Export Oriented Unit (EOU) and registered under various categories of services for which service tax is being discharged. On investigation, the Revenue observed that the appellant was receiving Information Technology Software Service (ITSS) from their foreign companies but did not discharge service tax on the sam....
X X X X Extracts X X X X
X X X X Extracts X X X X
....service tax under Section 66A Of the Finance Act 1994 does not arise. As per Section 66 read with Import of Service Rules, the following conditions have to be satisfied viz., (i) provider of services based outside India; (ii) Recipient of service is based in India and (iii) Service qualifies as import under Import Service Rules. In the instant case, the supplier being the Indian vendor, the first condition is not satisfied, hence, the appellant is not liable to service tax. 4.2 With regard to service tax on import of software in Compact Disc (CD) referring to the definition of software, he submitted that Compact Disc cannot be considered as software in view of the Hon'ble Supreme Court in the case of Tata Co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....08 and payment was made after 16.05.2008, the liability of service tax does not arise, since ITSS was introduced only from 16.05.2008. Relying on the purchase orders, it is submitted that payments were made in instalments and only the final payment was made after 16.05.2008, therefore, there cannot be any liability to service tax for the software received prior to 16.05.2008. Relied on the following decisions: * Madhya Pradesh State Mining Corporation Ltd. Vs. Principal Commissioner CGST and Central Excise, Bhupal (M.P.) 2023 (4) TMI 1075 CESTAT New Delhi * Commissioner of Central Excise and Customs, Vadodara-II Vs. Schott Glass India Pvt. Ltd. 2009 (1) TMI 45 High Court of Gujarat. 5. The learned Authorized Representat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ices (supra) has categorically held there are 'goods' and therefore, we do not find any reason to levy service tax on the goods, accordingly, the impugned order to the extent of demanding service tax on the Compact Disc is set aside. 7. With regard to demand of service tax on software electronically downloaded by the appellant, there is no dispute that they are liable to pay service tax, the only dispute is that since the electronically downloaded software was received on high sea sales, the same is not liable to service tax. High Sea Sales simply mean sales which are carried out when the goods which are being transported by a vessel are on the high seas at the time of sale. In the case of High Sea Sales, the original importer merely tra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mported prior to 16.05.2008 cannot be levied to service tax for the reason that the payments were made at a later date, is justified and also substantiated in view of the decisions relied upon by the appellant. The Hon'ble High Court of Gujarat in the case of Commissioner of Central Excise and Customs, Vadodara-II Vs. Schott Glass India Pvt. Ltd. (supra) observed that: "The taxable event in relation to service tax is admittedly the rendering of taxable service. The said taxable services were rendered between November 2001 and March 2002. In the circumstances, merely because the invoice is raised and payment made subsequently viz. after 16.05.2002 the liability cannot be fastened on the recipient of the services as a taxable event h....