Right to use software would amount to “deemed sale” under Art. 366(29-A). Law relating to transfer of “right to use” and deemed sales, summarized. The sum and substance of the ratio of the case of BSNL (supra) as discernible is that the contract cannot be vivisected or split into two. Once a lumpsum has been charged for the sale of CD (as in the case on hand) and sale tax has been paid thereon, the revenue thereafter cannot levy service tax on the entire sale consideration once again on the ground that the updates are being provided. We are of the view that the artificial segregation of the transaction, as in the case on hand, into two parts is not tenable in law. It is, in substance, one transaction of sale of software and once it is accepted that the software put in the CD is “goods”, then there cannot be any separate service element   in   the   transaction.   We   are   saying   so because even otherwise the user is put in possession and full control of the software. It amounts to “deemed sale” which would not attract service tax. Para 55

[CST v. Quick Heal Technologies Ltd., (2023) 5 SCC 469]

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