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3. In view of the above, proceedings were initiated against the appellant by way of issuance of a show-cause notice dt. 22/09/2009 proposing confirmation of demand of service tax to the tune of Rs.3,41,63,132/- for the period 09/07/2004 to 06/10/2005. The proposal in the said show-cause notice stands culminated into an order passed by the Commissioner confirming the service tax along with interest and imposing penalty to the extent of 100% in terms of Section 78 of the Finance Act, 1994.

4. Learned advocate appearing for the appellant has drawn our attention to the various decisions of the Tribunal as also to the Honble Madras High Courts decision, wherein it stands held that the service tax liability in respect of services relatable to maintenance and repair of computer software would be effective from 01/06/2007, when the definition of maintenance and repair service was expanded by including an explanation laying down that goods includes computer software. The Honble High Court of Madras in the case of Kasturi & Sons Ltd. [2011-TIOL-240-HC-MAD-ST], has struck down the Boards Circular No.81/2005-ST, as not applicable and has held that it is only with the expansion of definition of maintenance and repair service w.e.f. 01/06/2007, including the computer software as goods, that the said service would become liable to service tax. While holding so, the Honble Madras High Court has taken note of the Honble Supreme Courts decision in the case of Tata Consultancy Services(supra), which was the basis for issuance of Circular No.81/2/2005.