Definition of IT software covers anti-virus software; ST leviable: HC

Case Details: K7 Computing (P.) Ltd. v. Commissioner of GST & Central Excise, Chennai - [2022] 135 taxmann.com 305 (Madras)

Judiciary and Counsel Details

• • T.S. Sivagnanam and Sathi Kumar Sukumara Kurup, JJ.
  • N. Viswanathan for the Appellant. 
  • A.P. Srinivas, SSC for the Respondent.

Facts of the Case

The appellant had developed anti-virus protection software which were downloadable from appellant’s website. It filed writ appeal against the order levying service tax on anti-virus software. The contention of the appellant herein was that it developed anti- virus software for anti virus protection, anti-spy ware protection, e-mail scanner, firewall and privacy protection, etc. and did not provide any taxable service.

High Court Held

The Honorable High Court observed that the definition of ‘information technology software’ is wide enough to bring within its fold the anti-virus software, which would be obviously installed in the hardware and it would interact whenever the user of the computer engages the system. Therefore, the submission made by appellant that software was not capable of being manipulated or providing interactivity to a user was not tenable. Thus, writ appeal was liable to be dismissed.

List of Cases Referred to

• • Infotech Software Dealers Association v. Union of India [2010] 29 STT 132 (Mad.) (para 6).