Inter-connectivity usage charges were held outside service tax for the pre-amendment period, based on the binding circular.

Service tax was held not leviable on inter-connectivity usage charges for periods before the amended definition of telecommunication service took effect. The Tribunal followed its earlier decision in the same appellant's case and applied Circular No. 91/2/07-ST dated 12 March 2007, which clarified that such charges were outside service tax for the pre-amendment period. On that basis, the demand was found unsustainable, the impugned orders were set aside, and the appeals were allowed with consequential relief.

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Issues: Whether service tax was leviable on inter-connectivity usage charges for the periods prior to the amendment of the definition of telecommunication service.

Analysis: The issue was covered by the Tribunal's earlier decision in the appellant's own case, which had set aside the demand by following Circular No. 91/2/07-ST dated 12-3-2007. The circular clarified that service tax was not applicable to inter-connectivity usage charges for the period before the amended definition of telecommunication service took effect under the Finance Bill, 2007.

Conclusion: The demand was not sustainable and the impugned orders were set aside. The appeals were allowed with consequential relief.

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