International roaming services from foreign telecom providers were held outside telecommunication service tax where no telegraph authority existed.

International roaming services received from foreign telecom service providers were held not taxable as telecommunication service because the charging provision applied only where the service was provided by a person within the statutory concept of a telegraph authority under the Indian Telegraph Act, 1885. A foreign vendor located abroad did not satisfy that definition, and the Board's clarification and the Tribunal's earlier order in the assessee's own case supported that view. The service tax demand was therefore not sustainable, and the appeal was allowed in favour of the assessee.

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Issues: Whether international roaming services received from foreign telecom service providers were taxable under the category of telecommunication service when the service provider was not a telegraph authority.

Analysis: The applicable charging provisions required the service to be provided by a person falling within the statutory concept of a telegraph authority, linked to a licence under section 4(1) of the Indian Telegraph Act, 1885. The Board's clarification and the Tribunal's earlier order in the appellant's own case had already concluded that a foreign vendor located abroad does not fall within that definition and, therefore, the service rendered by such foreign provider cannot be taxed as telecommunication service. Following that precedent, the impugned demand could not be sustained.

Conclusion: The demand of service tax on international roaming services was not sustainable and the appeal was allowed in favour of the assessee.

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