𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗦𝘂𝗽𝗽𝗹𝗶𝗲𝗱 𝗮𝘀 𝗚𝗼𝗼𝗱𝘀 𝗮𝗻𝗱 𝗡𝗼𝘁 𝗮 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 📢 The Tribunal held: "Software supplied preloaded on hardware cannot be treated as a service; such supply is considered a sale of goods, and service tax cannot be demanded."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Advaced Sys Tek Pvt Ltd 𝗜𝘀𝘀𝘂𝗲: Whether the value of bought-out software is includable for service tax purposes?

𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant developed Smart Terminal Software (STM) and supplied preloaded software such as Oracle/MS Windows on hardware, for which they paid CST/VAT but not service tax. The department demanded service tax on these supplies.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled: Preloaded software supplied with hardware amounts to the sale of goods, not a service. Relying on Quickheal Technologies Ltd. (2022), it was confirmed that once tax is paid on the sale of software, service tax cannot be demanded again. The demand was set aside, and the appeal was allowed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Advaced Sys Tek Pvt Ltd vs. C.S.T.-Service Tax, Vadodara-II 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 11679 of 2016 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 04 December 2023 📜 This ruling establishes that preloaded software on hardware constitutes a sale of goods and is not liable for service tax.