Microsoft doesn't get relief in Delhi High Court
What is Export of service in Bangalore is Import of Service in Delhi. Recently the Delhi CESTAT had ordered a pre-deposit of Rs 70 Crores in a 260 Crore case of Microsoft. 2009-TIOL-1325-CESTAT-DEL
Microsoft approached the Delhi High Court for a stay which was refused. The High Court has posted the hearing for September 22. The Tribunal had ordered pre-deposit of Rs. 70 Crores and compliance is to be made on 30.09.2009. Microsoft must have found creating Windows and Office much easier than understanding Indian Tax Laws.
Meanwhile the very levy of Service Tax on import of services is under challenge before the Supreme Court. The Supreme Court of India has issued notice by order dated 04.09.2009 in the matter of Ankit Exim Pvt. Ltd. V. Union of India & Anr in SLP (C) NO. 21190/2009 challenging the legality and validity of Section 66A of the Finance Act 1994 and Taxation of Services (Provided from Outside India and Received in India) Rules, 2006.
Litigation is what law is all about.