TaxTMI 
TaxTMI 
2026 (8) TMI 333
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....al for interest and equal penalty by invoking extended period. For late filing Return of 3 quarters Rs.20,000/- each totalling Rs.60,000/- late fee was also imposed on Appellant under Section 70 of the Finance Act, 1994 read with Rule, 7(C) of the Service Tax Rules, 1994. 1.2 Learned Adjudicating Authority, taking into consideration the submissions made by the adversaries, allow the benefit of SSI exemption of Rs.10 lakhs to the Appellant for the first financial year under dispute i.e. 2015-2016 without referring to the fact that from October, 2015, the period was taken for calculation of Service Tax which is having half year tenure while 26AS of the Income Tax statement covers the whole period but since no demand was confirmed for that ....
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....sale' can never be considered as a 'service' in view of specific provision available for such sale and Notification No. 11/2016-ST dated 01.03.2016 exempting such services in relation to Information Technology Software, recorded on a media. To support his stand, he cited mainly two decisions passed by this Tribunal on the issue in the case of Infrasoft Tech. India Ltd. Vs. Commissioner of Central Excise, Mumbai-II in Service Tax Appeal No. 88568 of 2014 date of decision 26.02.2020 and Quick Heal Technologies Ltd. Vs. Commissioner of Service Tax, Delhi reported in 2020 (1) TMI 430 - CESTAT NEW DELHI 4. This being the issue required to be determined, it is also worthwhile to record the findings of the Commissioner (Appeals) at para 9 of th....
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....rology Act, 2009 (1 of 2010) or the rules made thereunder or under any other law for the time being in force, to declare on package of such media thereof, the retail sale price, from whole of the service tax subject to the condition that : (i) the value of the package of such media domestically produced or imported, for the purposes of levy of the duty of central excise or the additional duty of customs leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), if imported, as the case may be, has been determined under section 4A of the Central Excise Act, 1944 (1 of 1944) (hereinafter referred to as such value), and (ii) (a) the appropriate duties of excise on such value have been paid by th....
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....he retail sale price declared on such media has been recovered' from the customer. So these are the lecuna available against the Appellant for which duty was confirmed against it without being certain whether those conditionalities were infect fulfilled or not, since the order of the Adjudicating Authority goes to show that proof of sale of software was furnished but Appellant could not explain the type of transaction in respect of the sale of software and there was no detail of the sale of software available as envisaged in Notification No. 11/2016-ST dated 01.03.2016 but he had not stated anywhere that these conditions were actually breached upon examination of the sale invoice of the software produced before him when on the contrary, lea....
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....nies Ltd. (supra). A software programme may consist of various commands which enable the computer to perform a designated task. The copyright in that programme may remain with the originator of the programme. But the moment copies are made and marketed, it becomes goods, which are susceptible to sales tax. Even intellectual property, once it is put on to a media, whether it be in the form of books or canvas (in case of painting) or computer discs or cassettes, and marketed would become "goods". We see no difference between a sale of a software programme on a CD/floppy disc from a sale of music on a cassette/CD or a sale of a film on a video cassette/CD. In all such cases, the intellectual property has been incorporated on a media for purpos....