Service Tax on Software Activation Charges in Telecom System

Avaya Global Connect Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) Introduction: The Central Excise and Service Tax Appellate Tribunal (CESTAT) Ahmedabad in the case of Avaya Global Connect Vs Commissioner of Central Excise & ST presented an interesting analysis of tax liability. The issue revolved around the classification of software activation charges for a telecom system and their taxability under Business Auxiliary Service. Analysis: In the case, Avaya Global Connect was charged with the tax liability for the activation of inbuilt software in the telecom system of EPAB...