2007 (3) TMI 59

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....submissions made at length and perused the records. We find that the service tax demand in this case has arisen out of the fact that the assessee is also providing services of interconnectivity to other cellular operators/mobile operators and basic telephone service providers for interconnecting their customers with the customers of other cellular operators and mobile operators. They issue the bills/invoices for these interconnectivity usage charges and are collecting charges for the same and this service is a taxable service under section 65 of the Finance Act, 1994 under the category of 'Leased Circuit Services'. 3. On perusal of records, it is clear that the service tax demand has been made from the appellant on the ground that the inte....

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....ting with the appellant company but the link is also used for the purpose of calls emanating from the appellant company but the link is also used for the purpose of calls emanating from the appellant company to the subscribers of Reliance Infocomm. It is also not disputed that the charges for calls emanating from the appellant company to the subscribers of Reliance Infocomm are payable by the appellant company to Reliance Infocomm. Similarly charges at identical rates are payable for calls terminating at the subscribers of the appellant company from the subscribers of Reliance Infocomm to the appellant company by Reliance Infocomm. If the IUC charges collected by the appellant company from Reliance Infocomm is treated as towards "leased cir....

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....sp;               **                                                                            ** 11. Therefore, the following emerges : (a) That no telegraph authority can be treated as subscriber of another telegraph authority in relation to the link established between one telegraph authority and anothe....