𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗔𝗰𝘁𝗶𝘃𝗮𝘁𝗶𝗼𝗻 𝗖𝗵𝗮𝗿𝗴𝗲𝘀 𝗮𝗻𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝗯𝗶𝗹𝗶𝘁𝘆 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗿𝘂𝗹𝗲𝗱: "Activation charges collected for equipment/software features are categorized as a sale of goods, not a service, thereby exempt from service tax when VAT has been paid."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Avaya Global Connect ⚖️ 𝗜𝘀𝘀𝘂𝗲: Are the activation charges for software features subject to service tax, given that sales tax (VAT) has been paid on the transaction?

📝 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal upheld a prior ruling (Order No. A/10004/2023) confirming that activation charges for software features qualify as a sale of goods, exempt from service tax. Since VAT was paid, no grounds for suppression were found. The appeal was allowed, and any extended demand period was dismissed.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Avaya Global Connect vs. Commissioner of Central Excise & ST, Ahmedabad 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 07 July 2023 This ruling classifies software activation charges as a sale of goods, exempt from service tax.