No service tax on sale of banking software to bank

Infrasoft Tech India Ltd Vs Commissioner of Central Excise (CESTAT Mumbai)

Conclusion: Sale of banking software to a bank was ‘commercial exploitation’ merely because the bank deployed the software in its normal business activities was not correct in the absence of facts that establish otherwise or of any evidence that such was the transaction between assessee and the customers, therefore, demanding service tax on the same was not justified.

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