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Court : Madras High Court
Brief : : Developing and selling unbranded software, the authority for clarification relying on the decision in Tata Consultancy Services Vs State of Andhra Pradehs [1997] 105 STC 421 (AP) clarified that the peritioner was not eligible to issue Form XVII for purcchase of goods to avail of the concessional rate of tax under section 3(5) of the Act since unbranded software was not goods.
The petitioner request for blank 'C' form declarations under rule 10A of the Central Sales Tax (Tamil Nadu) Rules 1957 for purchase of goods for use in preparation of unbranded software was rejected by the respondents.
Citation : [2008] 17 VST 256 (Mad) Infosys Technologies Limited Vs Special Commissioner and commissioner of Commercial Taxes, Chepauk, Chennai and Another
Judgment :
Held, allowing the petition, that goods for the purpose of sales tax may be tangible or intangible property. They would become goods provided they have the attributes thereof regarding (a) utility (b) capability of being bought and sold and (c) capability of being transmitted, transferred, delivered, stored and possessed. If a software whether customised or non-customised satisfies these attributes it would be goods.
Therefore, the orders of the respondents holding the petitioner not entitled to use C forms for its purchases meant for use in the preparation of uncanned sotware were liable to be set asside.
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