RUCHI INFOTECH LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants have filed this appeal against the Order -in -Original No. 18/Commr./S.T./IND/2008 dated 30 -9 -2008 in terms of which the following demands along with interest and penalties including mandatory penalty were confirmed invoking the extended period:

(2.) WITH regard to the demand relating to maintenance of computer software, it is seen that Management, Maintenance or Repair was defined under Section 65(64) of the Finance Act, 1994 as under: - -

(3.) COMING to the next component of demand relating to Calibration of Machine, it is seen that the demand has been confirmed under the Management, Maintenance or Repair service. It is mentioned even in the show cause notice that the appellants had submitted that they have not rendered any service by way of maintenance of any machine and the demand was barred by time. The appellants have contended that they have developed a software, which a customer buys and uses for calibration of the machines or equipment. The invoices issued by the appellants in this regard were perused and it was found that the invoices inter alia mention that the amounts are debited towards SCADA (software). The appellants have vehemently stressed that the calibration of machines is done by customers themselves on their own and they only sell their software to the customer, which is used by them for that purpose. The show cause notice also does not elaborate as to how it is covered under Management, Maintenance or Repair service. Seen in this light the demand of Rs. 28,800/ - also does not sustain on merit.