Marketing the softwares sold by the foreign principal is not taxable in service tax (Pdf Attach )
Table of Contents
Case Covered:
Sun Microsystems (I) PVT LTD., vs Commissioner of Central Excise & Service Tax , LTU
Citation:
1.M/s Arcelor Mittal Stainless India Pvt. Ltd. V/s Commissioner Service Tax, Mumbai-II
Facts of the case
The appellant is a subsidiary. It markets the software sold by the foreign principal. It scouts for purchase orders. Purchase orders are placed by Indian customers on foreign principal. Demand of service tax of over Rs.17 crores was confirmed under “business auxiliary” service. Benefit of export of service was denied. Hence, appeal.
Observations & Judgement of the court
Hon’ble CESTAT, Bangalore allows appeal. Holds that the facts are identical to decision of Larger Bench in Arcelor Mittal case. Rejects Revenue’s contention that installation and maintenance was undertaken by the appellant. Accordingly, demand is set aside.
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