TaxTMI 
TaxTMI 
2018 (11) TMI 1093
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....nder which they avail infrastructure services for which payment was made by the former. Pursuant to investigations, show cause notice dt.18.08.2010 was issued to appellant inter alia demanding service tax liability of Rs. 2,48,32,462/- on such payments made to the overseas group entity under the category of "Online Information and Database Access or Retrieval" (OIDAR) services. In adjudication, the Commissioner vide impugned order dt. 25.11.2011 confirmed the demand as proposed in the SCN with interest and also imposed equal penalty under Section 78 of the Finance Act, 1944. Aggrieved, the appellants are before this forum. 2. When the matter came up for hearing, on behalf of the appellant, Ld. Counsel Shri Prasad Paranjape reiterated the g....
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....ection 65 (109a) of the Act that private network services including provision of wire or wireless telecommunication link between specified points and data transmission services including provision of access to wired or wireless facilities specifically designed for efficient transmission data shall be treated as a telecommunication service. v) Appellant relies on the judgements of this Hon'ble Tribunal in the case of United Telecom Ltd. Vs. Commr. Of Service Tax, Bangalore - 2009 (14) STR 212 (Tri.- Bang.) where in a similar situation, service tax demand was set aside by this Hon'ble Tribunal. vi) In view of the above submissions, he submits that the services received by them from their own overseas entity will not merit classification as ....
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....f the entire net work resources. Hence the service provided cannot definitely come under the category of OIDAR. 4. Heard both sides. 5.1 From the facts on record, it is seen that the following IT Infrastructure services were centrally provided by Philips Netherlands to all their locations worldwide: i. Managed Backbone infrastructure to enable communication by means of electronic mail for its employees; ii. Managed Desktop and managed server service offerings; iii. Maintenance of software of users' desktops; iv. Email services for non-employees; v. Services to manage personal calendar, share calendar, personal contacts, corporate directory, to do offline delegation, mail back-up and restore services; vi. IT Infrastructure by way of ....