Service Tax
TRT-2025-
Cestat Ahmedabad
Date:-19-02-24
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 19 February 2024
Parties: Emerson Process Management I Pvt. Ltd Vs C.C.E. & S.T.-Daman
Facts –
- The Applicant, Emerson Process Management I Pvt. Ltd, awardedmajor part of contract to M/s Fisher Rosemount System, Inc (M/s.FRS) located outside India.
- The appellant has paid service tax under reverse charge mechanism on project management services and validation services under management consultant services and availed the credit of the same. The appellant has not paid service tax on the balance services as either same were relating to the software services, reimbursement of services or supply of goods.
- Show Cause Notice dated 20-06-2011 alleging that all the services rendered by M/s. FRS during the period March 2006 to March 2008 are covered under the category of Management Consultant Service and Appellant has short paid Service Tax on 50% of the value of the invoice issued by M/s. FRS.
Issue –
- Whether service tax is leviable on software services?
Order –
- The Tribunal observed that in the present case against the same contract the appellant have been paying service tax in respect of some of the activity of service received from the board, whereas in respect other activities, they have not paid the service tax under a bona fide belief that those are related to software services.
- It is settled law that when there is a revenue neutrality in any demand no suppression of the fact can be attributed to the assessee. The present case is on much better footing as the appellant has paid service tax on the part of the activity of the service received from abroad. Therefore, there was no suppression of fact on the part of the appellant. Moreover, the present case is clearly of revenue neutral.
- In the present case, the demand was raised for the period from March, 2006 to March, 2008 whereas the show cause notice was issued on 20.06.2011 i.e. much after the normal period. Accordingly, the entire demand falls under the extended period.
- Hence, the Appeal is allowed.
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