TaxTMI 
TaxTMI 
2017 (10) TMI 453
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....The appellant also registered under Section 69 of the Finance Act, 1994 as they are providing taxable service under the category of Business Auxiliary Service. The appellant have various IT System and lease lines which are centrally managed by IT department of M/s. BC Components International BV, Netherland, which are their associate company. The cost relating to lease line charges for e-mail and internet services, software maintenance and software licence fee, maintenance of IT services, systems support, etc are managed centrally. These costs are then allocated to various companies of the group based on logical basis like the number of users, system usages. The share of such of IT cost allocated to the appellant is paid by them. During the....
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....ost which is on sharing basis reimbursed to their associate group company in the abroad against the IT facility availed by them. He submits that since associated group company is giving facilities to all the Vishay Group worldwide entity, there is no provision of service, however it is only re-imbursement of cost of facility provided by the associated group company M/s. BC Components International BV, Netherland. This arrangement is not of provision of services therefore the same is not taxable. As per the agreement entered into by the appellant with M/s. BC Components International BV, Netherland is for availing various facilities related to IT support including Global ERP system, Communication systems, Global licencing for the various sta....
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....rways Vs. CCE, (Adjn), Delhi[2014(36)STR 598(Tri. Del)] (d) Jet Airways (I) Ltd Vs. Commissioner of ST, Mumbai[2016(44)STR 465 (Tri.Mum)] (e) Reliance ADA Group Pvt Ltd. Vs. Commissioner of S.T. Mumbai IV[2016(43)S.T.R. 372(Tri. Mum)] (f) Tetrapack India Pvt Ltd Vs. Commissioner[2015(39) S.T.R. 995(Tri. Mum)] He further submits that BC Components International BV, Netherland provided facility namely AT & T Service, Licensing Charges, BCs Global IT support, that BCCGN team was a central gateway for managing the corporate IT service/application/infrastructure and charges cost without mark up used to get allocated based on the site users and communication link. In the said arrangement there is no provision of service from BC Compon....
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....oner [2011(23)S.T.R. 555(Tri.Ahmd.)] 3. On the other hand, Shri. M.P. Damle, Ld. Asstt. Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. We have carefully considered the submissions made by both sides and perused the records. 5. We find that appellant have various IT system and lease licences which are centrally managed by IT department of BC Components International BV, Netherland, which is their associated company. The cost relating to the e-mail and internet services, software maintenance and software licence fee, maintenance of IT services, systems support, etc are managed centrally by BC Components International BV, Netherland and cost of the said then allocated to their v....
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....(zh) taxable service means any service provided or to be provided to any person by any person in relation to online information and database access or retrieval or both in electronic form through computer work in any manner. In the context of the present case as per the nature of the service it is internet service and online information service that includes database service, provision of information on website, data retrieval etc. Internet service provider provides access to the website through computer networks and the websites. The also provides dedicated lease licence, they are integral part of the internet operation and without their service data or information can neither access nor retrieved, therefore service of internet service pro....