Order Date – 06 December 2023

Parties: Edukite Software Pvt Ltd Vs C.C.E. & S.T.-Vadodara-I

Facts –

• The Appellant, Edukite Software Pvt Ltd, was issued with a show cause notice alleging that the appellant had not discharged their Service  Tax with respect to services rendered to M/s. Attano Media and Education  Private Limited (which were later taken over by M/s. HCL Info systems Limited).

Issue –

• Whether the appellant is liable to discharge service tax?

Order –

• The Tribunal observed that the software has been supplied on a medium on payment of VAT/Sales tax. It has been pointed out that the medium is in the nature of USB Stick/DVD/Hard Drive. It was noticed that the Hon’ble Apex Court in the case of Quick Heal Technologies Ltd. has clearly held that software loaded on a medium like USB/CD/Hard Drive etc. is goods and not services.
• Thus it was held that where the software is supplied loaded on a medium then the same is to be treated as sale and not a service. In the instant case, it is not in doubt that software has been supplied loaded as a medium. Therefore it attains character of goods. Consequently, the demand in the instant case cannot be sustained.
• The impugned order is set aside and appeal is allowed.