Case Law Details
SAP India Pvt. Limited Vs Commissioner of Central Excise (CESTAT Bangalore)
By the impugned orders in the above appeals, the respondent has confirmed the demand of service tax on the licence fee paid to SAP AG, Germany, for grant of non-exclusive licence to use, market and sublicense the software, third party database and third-party software to ‘end user’ in the territory, on ‘reverse charge basis’ under the taxable head ‘Franchise Services’ from 18.04.2006 onwards.
2. The services received are classified by Revenue as “Franchisee service” in the impugned orders, and the demand is for the period April 2006 to March, 2008 and is quantified at Rs. 79,07,67,027/-. Apart from this demand, there is interest and also penalty imposed vide the impugned orders.
