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The requirement of filing the annual VAT statements by traders in addition to monthly returns will be dispensed with. | The penalty levied on late filing of monthly returns will be reduced from 10% to 5% if the delay does not exceed 10 days. | The system of e-filing of tax returns will be introduced selectively during the current year. | CBDT has notified Industrial Park Scheme 2008 expanding the ambit of “industrial activity” to include research and experimental development on natural sciences and engineering, development of computer software, and information technology enabled services. | Net direct tax collections in the first quarter of the present fiscal stood at Rs.57,373 crore, up from Rs.41,391 crore, registering a growth of 38.61 percent. | Shri Narendra Bahadur Singh has taken over as Chairman of the Central Board of Direct Taxes with effect from the afternoon of 30 June 2008. | As a part of the modernization of computer infrastructure in the Income Tax Department, the Computer Centers at Amritsar, Baroda and Rohtak will be shutdown for a period from 27.06.2008 to 09.08.2008. During this period the work of issue of PAN card would be stopped completely in these centers.
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'Unbranded/customised software' marketed by Infosys eligible for CST benefits: HC

Chennai, Aug. 4 The Madras High Court has held that Infosys Technologies Ltd., Chennai, leading developers and marketers of unbranded/customised software for system up gradation, was entitled to benefits of issuing Form 'C' declarations under Section 2 (d) of the Central Sales Tax Act, 1956 & corresponding to Sec 2 (3) of TN General Sales Tax Act, 1959.

The court, which heard the writ petitions preferred by the company, challenging the order dated October 31, 2005 of the Special Commissioner & Commercial of Commercial Taxes, Chennai (1st respondent) holding that the petitioners were not entitled to use the Form 'C' for their purchases for use in preparation of uncanned software, set aside the said order.

Mr Justice K. Chandru, in his order citing judgments of the Supreme Court, said the question whether uncanned software was amenable to the sales tax law was dealt with by the apex court in Tata Consultancy Services v. State of Andhra Pradesh [2005(1)SCC 308 = (2004) 137 STC 620]. The Constitution Bench of the Supreme Court held that branded software was 'goods'. The Bench also agreed with the submission of the petitioner in that case that there was no distinction between branded and unbranded software. The majority opinion in the said judgment held that they were not expressing any opinion on that issue.

The Judge said, in his concurring opinion in the very same judgment, Mr S.B. Sinha J, ruled that a 'goods' might be tangible property or an intangible one. It would become 'goods' provided it had attributes thereof having regard to (a) its utility; (b) capable of being bought and sold; and (c) capable of being transmitted, transferred, delivered, stored and possessed. If a software satisfied these attributes, the same would be goods.

Mr Justice Chandru said that in the light of the pronouncement of the apex court, the 1st respondent's reasoning in the impugned order of October 31, 2005 would have to be necessarily set aside. The consequential order dated November 15, 2005 of the CTO, Thiruvanmiyur Assessment Circle, informing the petitioners that the request for Form 'C' would not be considered, would also have to be set aside. Hence, the said orders were set aside.

In the light of the common order passed by this court, the respondents were directed to act according to the dicta laid down by the Supreme Court.