TaxTMI 
TaxTMI 
2015 (9) TMI 785
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....fices at several locations across the country from where the DTH service are being provided. Up linking services are being provided only from FC-9, Film City, Sector-16A, Noida. The dispute in this case is only in respect of up linking services. 1.2 So far as the DTH services are concerned, the appellant have procured satellite service from India based service provider M/s. Antrix Corporation Ltd., Bangalore for up linking contents of DTH services from the earth stations to the allotted transponders on the satellite. For this activity M/s. Antrix Corporation Ltd. raises invoices on the appellant along with Service Tax. 1.3 The appellant under the agreement with M/s. B.T. Singapore Pte. Ltd. (a foreign Satellite Service Provider)....
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....r imposition of penalty on them under Sections 76, 77 and 78 ibid. 1.4 The show cause notice was adjudicated by the Commissioner vide Order-in-Original dated 19-12-2012 by which the entire Service Tax demand, as mentioned above, was confirmed along with interest thereon under Section 75 of Finance Act, 1994 and besides this, penalties were imposed on the appellant under Sections 76, 77 & 78 ibid. The Commissioner in this order held that hiring of transponder capacity by the appellant from M/s. B.T. Singapore Pte. Ltd. is "Infrastructural Support service" as defined in the Explanation to the definition of "Support Service of Business or Commerce" under Section 65(104c) of the Finance Act, 1994 and accordingly the appellant as recipient....
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.... outsourced, that this entry would not cover the activities relating to the conduct of the main business, that Commissioner in the impugned order has given a finding that the services received by the appellant from M/s. B.T. Singapore Pte. Ltd. - hiring of transponder capacity are "Infrastructural Support Services" as defined in Section 65(104c), that according to the definition of Infrastructural Support Service as given in the Explanation to Section 65(105C), this expression includes providing office along with office utilities, lounge, reception with competent personnel to handle messages, secretarial services internet and telecom facility, pantry and security, that applying the principle of noscitura-sociis, the expression "infrastructu....
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....rs mounted on the satellite orbiting the earth over the equator at the height of 36000 km cannot be said to be in the present in India during use, that the impugned order is, therefore, not correct, and that the appellant have strong prima facie case in their favour and hence the requirement of pre-deposit of the Service Tax demand, interest thereon and penalty may be waived for the hearing of the appeal and recovery thereof may be stayed. 4. Sh. Govind Dixit, the learned DR, strongly opposed the stay application and reiterating the findings of the Commissioner in the impugned order, pleaded that the service received by the appellant from the M/s. B.T. Singapore is covered by the definition of "Support Service of Business or Commerce"....
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....en correctly imposed on them. He, therefore, pleaded that this is not a case for waiver from requirement of pre-deposit. 5. We have considered the submissions from both the sides and perused the record. The appellant, in term of their agreement with M/s. B.T. Singapore Pte. Ltd. have had hired certain transponder capacity in satellite under the control M/s. B.T. Singapore Pte. Ltd. Which was used to provide up linking services to their customers. The point of dispute is as to whether hiring of transponder capacity by the appellant in the satellite of M/s. B.T. Singapore Pte. Ltd. is taxable as a "support service of business or commerce" under Section 65(105)(zzzq) read with Section 65(104c) of the Finance Act, 1994 and whether the Ser....