TaxTMI 
TaxTMI 
2017 (5) TMI 882
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.... Whenever the Indian subscriber goes abroad, the foreign telecom service provider‟s network is used by the appellant for keeping its subscriber connected to the network. The department initiated show cause notice proceedings against the appellant on the ground that it is liable to pay service tax, under reverse charge mechanism, on the outbound roaming services received from the foreign telecom service provider under the category of "Telecommunication services". Thus show cause notice issued in this regard was adjudicated vide order dated 05.02.2010 wherein demand of service tax of Rs. 10,46,360/- was confirmed along with interest and penalties under section 78 and 76 of the Finance Act 1994. In appeal against the adjudication order t....
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....rds. 8. The short question involved in this appeal for consideration by the Tribunal is whether the services provided by the overseas service provider is conforming to the telecommunication services defined under sub clause (zzzx) of section 65(105) ibid. 9. On perusal of the statutory provision it is seen that in order to fall under the taxable category, service provider must be a Telegraph Authority. The term „Telegraph Authority‟ has been defined under clause 111 of section 65 ibid which is as under: "Telegraph Authority has the meaning assigned to it in clause (6) of section 3 of the Indian Telegraph Act, 1885 (13 of 1885) and includes a person who has been granted a license under the first proviso to sub-section (1) of S....
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....ing on the circular dated 15.07.2011 has held that services provided by any person who is not a Telegraph Authority, is not liable to service tax either under section 66 or under section 66 A ibid. The relevant paras of the said decision are extracted here below: 5.3 Now let us see how the leased circuit services with which we are concerned has been defined in Section 65(105). Prior to 1-6-2007, the taxable service was defined as follows :- "(105) „Taxable service‟ means any service provided or to be provided - (a) to (zc) ............... (zd) to a subscriber, by the telegraph authority in relation to a leased circuit." With effect from 1-6-2007, leased circuit services got merged into telecommunication service as defined ....
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....e service provider situated outside India/group companies under reverse charge mechanism [Section 66A of the Finance Act, 1994 read with Rule 2(1)(d)(iv) of the Service Tax Rules, 1994]. 2. The matter has been examined. The activities are in the nature of Leased Circuit services presently covered under Telecommunication service. However, for getting classified under Telecommunication service, Section 65(105)(zzzx) of the Finance Act, 1994 provides that the service should be provided by a Telegraph authority. Telecommunication service as defined under Section 65(109a) covers services which are provided by a person who has been granted a licence under the first proviso to sub-section (1) of Section 4 of the Indian Telegraph Act, 1885. In thi....