{"id":2754,"date":"2025-02-23T19:19:07","date_gmt":"2025-02-23T13:49:07","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=2754"},"modified":"2025-02-23T19:19:07","modified_gmt":"2025-02-23T13:49:07","slug":"website-development-and-maintenance-services-cannot-be-classified-as-oidar-services-due-to-substantial-human-intervention-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/website-development-and-maintenance-services-cannot-be-classified-as-oidar-services-due-to-substantial-human-intervention-cestat","title":{"rendered":"Website Development and Maintenance Services Cannot Be Classified as OIDAR Services Due to Substantial Human Intervention | CESTAT"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000383355\/website-development-and-maintenance-services-cannot-be-classified-as-oidar-services-due-to-substantial-human-intervention\">TRIVEDILLC MARKETING PVT. LTD. Versus COMMISSIONER OF CGST &amp; CENTRAL EXCISE, BHOPAL - (2025) 26 Centax 328 (Tri.-Del)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Dr. Rachna Gupta<\/strong>, Member (J) &amp; <strong>Ms Hemambika R. Priya<\/strong>, Member (T)<\/li>\n<li><strong>Shri Awadesh Kumar Pandey<\/strong>, Adv., for the Appellant.<\/li>\n<li><strong>Ms Jayakumari<\/strong>, Authorized Representative, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The appellant, a service provider, was investigated by the department for offering online services to a foreign client, including website development, hosting, security updates, and online marketing. The department classified these services as Online Information and Data Access or Retrieval (OIDAR) services, resulting in a service tax demand. The appellant challenged this classification, arguing that the services should be considered &#8220;Export of Services&#8221; rather than OIDAR, as they involved substantial human intervention in website development and consultancy. Despite this, the Adjudicating Authority upheld the demand, which was later confirmed by the Commissioner (Appeals). Dissatisfied with the decision, the appellant filed a petition before the Delhi CESTAT, seeking to have the tax demand set aside.<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>The Delhi CESTAT, after considering the arguments, concluded that the appellant&#8217;s services, including website development and online marketing, did not qualify as Online Information and Data Access or Retrieval (OIDAR) services. The Tribunal noted that OIDAR services are typically automated with minimal human intervention, whereas the appellant\u2019s services involved substantial human effort. Referring to relevant rules and circulars, the Tribunal held that such services were not OIDAR and set aside the tax demand. The appeal was allowed, and the demand for service tax was cancelled.<\/p>\n<h2><em>List of Departmental Clarification Cited<\/em><\/h2>\n<ul>\n<li>C.B.E. &amp; C. Circular No. 11\/1\/2001-TRO, dated 9-7-2001 [Para 8]<\/li>\n<li>C.B.E. &amp; C. Circular dated 20-6-2012 [Para 9]<\/li>\n<\/ul>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2028%2F2012-S.T.&amp;itemType=AP\">Notification No. 28\/2012-S.T.<\/a>, dated 20-6-2012 [Para 5]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: TRIVEDILLC MARKETING PVT. LTD. Versus COMMISSIONER OF CGST &amp; CENTRAL&hellip;<\/p>\n","protected":false},"author":5,"featured_media":2756,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-2754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Website Development and Maintenance Services Cannot Be Classified as OIDAR Services Due to Substantial Human Intervention | CESTAT<\/title>\n<meta name=\"description\" content=\"The Delhi CESTAT ruled that the appellant\u2019s services involved substantial human intervention and did not qualify as OIDAR, setting aside the service tax demand.\" \/>\n<meta name=\"robots\" content=\"index, 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