yes it is running as a service and I see "Local System" there

Then, as identified by those above, your script is running under a different account ("Local Service") when run from Apache2 than when you are running it from the command line. Hence it is subject to different permissions.

You need to change the account Apache2 is run as:

Right click the Apache2 service line, click "Properties", then the "Log on" tab, then "This account" and enter (or select) a username and password.

And ensure that the user you choose has appropriate permissions (NOT an Administrator account!).

But be aware! If this is an external facing machine, changing these permissions can expose your machine to intrusions. If you don't know what you're doing, ask someone who does. (Eg. Your local SysAdmin).

Or, move all the files (The script itself plus all the Inline::C temporary directories and files) underneath your script-enabled Apache cgi-bin directory. But as I always found Apache configuration too messy to bother with, you'll need someone else to tell you how to do that.