𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗧𝗮𝘅𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗖𝘂𝘀𝘁𝗼𝗺𝗶𝘇𝗲𝗱 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗦𝗮𝗹𝗲 📢 The Tribunal held: "Customized software sold on a CD with hardware is not a service but excisable goods. Thus, no service tax is applicable."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗘𝗻𝘁𝗶𝘁𝘆: Yokogawa India Limited, engaged in manufacturing Distributed Control Systems (DCS). 𝗜𝘀𝘀𝘂𝗲: Is customized software supplied with hardware considered excisable goods or a taxable service? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: Imported and customized software supplied on CD as part of DCS, exempted from service tax as it qualified as “excisable goods.”

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal found: The software was customized exclusively for the DCS hardware and transferred to customers as goods on a CD. The transaction indicated a sale of goods, not a service. The appeal was allowed as the software was deemed excisable goods, exempt from service tax.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Yokogawa India Limited vs. C.C.E. & S.T.-BHAVNAGAR 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 343 of 2011 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 22 September 2023 📜 This ruling confirms that customized software sold on physical media as part of a system is treated as goods, not a service, and is exempt from service tax.