Relief to Oracle: No Service Tax Demand on Agreement Prior to Introduction of Levy, rules CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled in favor of Oracle, determining that no service tax is applicable on agreements executed before the introduction of the levy. The tribunal found that the service tax cannot be imposed retrospectively on services provided under agreements signed before the tax was legislated. This decision offers significant relief to businesses that had entered into long-term contracts before the introduction of new tax laws.