Summary
- The CESTAT Hyderabad has ruled that charges by Software Technology Parks of India (STPI) for SOFTEX certification and No Objection Certificates are taxable as Business Support Service under the Finance Act, 1994.
- The Tribunal dismissed STPI's appeals, confirming Service Tax demands totaling over Rs. 5.17 crore for 2007-2012, asserting these activities are not sovereign functions.
- STPI argued its services were statutory and exempt from tax, but the Tribunal found no evidence of compulsory levies or statutory fees involved.
- This decision reinforces the tax obligations of autonomous bodies like STPI, potentially impacting similar entities in the tech sector.
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