2012 (12) TMI 357

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....ervices rendered in India other than in the state of Jammu & Kashmir is liable to service tax under Section 65(105(zzzx). The appellant has not been paying service tax on services enabled through India Telephone Cards sold in Jammu & Kashmir, though such service was largely provided outside Jammu & Kashmir. Revenue was of the view that service tax is payable on services provided in India, outside the state of Jammu & Kashmir notwithstanding the fact that the charges for such services was collected through sale of cards in Jammu & Kashmir. Based on such reasoning a demand notice for such service provided during the period 2006 to 2010 was issued and after due process a demand of Rs.2,68,70,843/- is confirmed along with interest and penalties....

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....part of the appellant company which is a public sector undertaking. Considering these aspects, the appellant requests for admission of appeal without any pre-deposit of dues arising from the impugned order. 6. Opposing the prayer the ld. A.R. for Revenue submits that service tax is not on sale of India Telephone Cards it is for the service enabled by use of such cards for which consideration is collected in advance by sale of such cards. He makes it clear that the demand is only in respect of that portion of the service which has been provided outside the state of Jammu & Kashmir using such telephone cards sold in Jammu & Kashmir. It is his contention that service tax is a levy on service provided and place of providing such service is t....

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....n where the franchisees are responsible only for collection of the consideration for service and not for providing the telecommunication service. In a technology intensive operation like providing of telecommunication service backed up by computers it is always possible to find out the consideration received for service provided in taxable territory if only the appellant desired to do so. The appellant has prima facie encouraged sale of such cards in Jammu & Kashmir and not accounting and reporting services provided in the taxable territory using such cards. In our view prima facie this is a case of suppression of information with intent to evade payment of service tax. In fact we are surprised that public sector undertaking resorted to thi....