Case Law Details
Basf India Ltd Vs C.C.E. & S.T (CESTAT Ahmedabad)
CESTAT Ahmedabad held that as ‘information technology software service’ was implemented w.e.f. 16.05.2008 the same cannot be held taxable prior to that date. Hence, demand for the period prior to 16.05.2008 is not maintainable.
Facts- The audit was conducted by the officers of the central excise wherein it was pointed out that appellant has received ERP related services from two service provider situated outside India and accordingly, appellant was liable to pay service tax u/s. 66A. As per the audit officers the appellant had paid total amount of Rs. 2,21,73,200/- to M/s. CIBA Switzerland and BASF, South East Asia Singapore during the period from June 2006 to March, 2008 towards ERP system related services which should have been taxed under the category of Management or Business Consultant Service” and further paid amount of Rs. 2,90,65,606/- during the period from June 2006 to April, 2010 towards ERP system related service should be taxable under the category of “Information Technology Software Service”.
Conclusion- Held that the introduction of the new service itself shows that since the same was not taxable under the existing entry prior to its introduction the same was not taxable prior to its introduction, for this reason also the revenue itself admitted that very same service of ERP implementation is classifiable under “Information Technology Software Service” w.e.f 16.05.2008 and the same was not taxable prior to this date under management or business consultant service, for this reason also the demand for the period prior to 16.05.2008 is not maintainable.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
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