No service tax on Software activation charges under BAS

Black Box Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) Software Activation charges are not covered under ‘Business Auxiliary Services’ The CESTAT, Ahmedabad in Black Box Limited v. Commissioner of Central Excise & ST, Ahmedabad-iii [Service Tax Appeal No. 572 of 2012-DB dated January 4, 2023] has held that amount collected by the assessee as “activation charges” of equipment/ software features are covered under the activity of sales of goods and not covered under the provisions of “Service” under the Finance Act, 1994 (“the Finance Act”). Facts: Bla...