Software Technology Park of India Vs Pr. Commissioner of Central Tax (CESTAT Hyderabad)
Summary: The two appeals concern a common dispute regarding the levy of Service Tax on charges collected by M/s Software Technology Parks of India (STPI) towards certification of SOFTEX forms and issuance of No Objection Certificates (NoCs). The Department classified these activities under “Business Support Service” under the Finance Act, 1994.
In appeal no. ST/20226/2014, the dispute covered the period from 2007-08 to 2011-12 and involved Service Tax of Rs. 5,15,53,520/- along with interest and penalties. Appeal no. ST/30531/2016 concerned the period April 2012 to June 2012 and involved Service Tax of Rs. 2,06,792/- along with interest and penalties. The Commissioner (Appeals), in the latter appeal, upheld the demand while extending cum-tax benefit.
STPI contended that it is an autonomous society registered under the Societies Registration Act, 1860 and functioning under the administrative control of the Department of Electronics and Information Technology, Government of India. It was established, inter alia, to administer and facilitate implementation of the Software Technology Park Scheme. STPI was separately registered with the Service Tax Department and admittedly paid Service Tax on various services including renting of immovable property, bandwidth services, co-location services and project consultancy. The controversy was confined to charges connected with activities under the STP Scheme, particularly SOFTEX certification and issuance of NoCs.
