Custom, Excise & Service Tax Tribunal Ms Computer Sciences Corporation India ... vs Ce & Cgst Noida on 30 October, 2023 CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL ALLAHABAD REGIONAL BENCH COURT NO.I Service Tax Appeal No.55382 of 2013 (Arising out of OrderinOriginal No.33/Commissioner/Noida/201213 dated 18/10/2012 passed by Commissioner of Customs, Central Excise & Service Tax, Noida) M/s Computer Science Corporation India Pvt. Ltd., .....Appellant (DLF IT Park, Plot No.A44/45, Sector62, Noida201301) VERSUS Commissioner of Customs, Central Excise & Service Tax, Noida ....Respondent (C56, Sector62, Noida) WITH Service Tax Appeal No.56090 of 2013 (Arising out of OrderinOriginal No.33/Commissioner/Noida/201213 dated 18/10/2012 passed by Commissioner of Customs, Central Excise & Service Tax, Noida) Commissioner of Customs, Central Excise & Service Tax, Noida .....Appellant (C56, Sector62, Noida) VERSUS M/s Computer Science Corporation India Pvt. Ltd., ....Respondent (DLF IT Park, Plot No.A44/45, Sector62, Noida201301) APPEARANCE: Shri Atul Gupta, Advocate & Shri Prakhar Shukla, Advocate for the Assessee Shri Sarweshwar T. Khairnar, Authorised Representative for the Revenue HON'BLE MR. SANJIV SRIVASTAVA, MEMBER (TECHNICAL) FINAL ORDER NOs.7016170162/2023 DATE OF HEARING : 11 October, 2023 DATE OF PRONOUNCEMENT : 30 October, 2023 Service Tax Appeal No.55382 & 56090 of 2013 2 SANJIV SRIVASTAVA: This appeal is directed against order in original No 33/ आयुक्त/ नोयडा /201213 दिनााँ क 18.10.2012 of the Commissioner Central Excise, Customs and Service Tax Noida. By the impugned order following has been held: "ORDER 1. I hereby confirm the demand of service tax amounting to Rs 2,33,54,306/ (Rupees two crore thirty three lacs fifty four thousand three hundred and six only) against M/s Computer Science Corporation India Pvt. Ltd C29 Sector 55, Noida under Section 73 (1) of Finance Act, 1994. 2. I order to recover the above said confirmed amount along with appropriate rate of interest as provided under Section 75 of Finance Act, 1994. 3. I impose a penalty of Rs 2,33,54,306/ (Rupees two crore thirty three lacs fifty four thousand three hundred and six only) against M/s Computer Science Corporation India Pvt. Ltd C29 Sector 55, Noida under Section 76, 77 and 78 of Finance Act, 1994." 2.1 Appellant is engaged in providing IT support services to its clients in and outside service. The nature of services provided are: a. Installation or implementation of customized software; b. Customization of software to be installed; c. Development of patches or intermediary software which enable the main software to run smoothly onto the operating system environment of the client; d. Upgradation of installed software with newer versions, and e. Enhancement or modification of software by either opening or closing some of the inbuilt features or reports of the software. 2.2 During course of the scrutiny of the records of the appellant it was observed that during the year 200607, Service Tax Appeal No.55382 & 56090 of 2013 3 appellant had received Rs. 19,08,03,156/ from its indigenous clients namely, M/s Sahara Life Insurance Corporation Lucknow, ICICI Prudential LIC Mumbai. They did not paid any service tax on these services provided by them under the category of Management, Maintenance and Repair Services as defined by Section 65 (105) (zzg) of the Finance Act, 1994. 2.3 A show cause notice dated was issued to appellant asking tehm to show cause as to why: (i) Service tax amounting to Rs 2,33,54,306/ (Rupees two crore thirty three lacs fifty four thousand three hundred and six only) should not be demanded and recovered from them under the proviso to Section 73 (1) of Finance Act, 1994 as amended. (ii) Interest as leviable on the above amount should not be recovered from them under Section 75 of Finance Act, 1994 as amended. (iii) Penalty should not be imposed on them under Section 76, 77 and 78 of Finance Act, 1994 for contravention of the provision