TaxTMI 
TaxTMI 
2024 (12) TMI 600
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....s directed to hear and dispose the appeal on merits. Based on the above order, the Commissioner (Appeals) in the impugned order referring to various provisions of 'Online Information and Database Access or Retrieval Services' (OIDAR) under Section 65(105)(zh) of the Finance Act, 1994 held that the appellants being the recipient of the said services were liable to pay Service Tax as per Section 66A read with Section 68 of the Finance Act, 1994 read with Rule 2(1)(d)(4) of the Service Tax Rules, 1994. The Commissioner (A) taking into consideration the activities undertaken by the appellant as per the agreement held that they were liable to service tax under OIDAR Services. In Appeal No. ST/951/2010 though the notice was issued for confirming the demand from 01.09.2006 to 28.08.2008, the Commissioner (A) upheld the demand only for the normal period and accordingly, confirmed the demand for the period 01.10.2006 to 28.02.2008 under Section 73(1) of the Finance Act, 1994 and confirmed penalty under Section 76 of the Finance Act, 1994. In Appeal No. ST/952/2010 for the period March 2008, the Commissioner (A) confirmed the demand of service tax along with interest and imposed penalty unde....
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....com Ltd. Vs. CST., Bangalore, 2009(14) S.T.R. 212(Tri.-Bang)- appeal dismissed 2014 (33) S.T.R. J193 (Kar) • Intimate Fashions Pvt Ltd Vs. CCE, 2023-TIOL-873-CESTAT-MAD. • Ferromatik Milacron India Pvt Ltd Vs. CST, 2023-TIOL-907-CESTAT-AHM • Philips Electronics India Ltd., Vs. CST, 2019 (21) G.S.T.L. 450 (Tri. - Chennai) 3.2 It is further submitted that even if tax is payable under the reverse charge mechanism by the appellant, the appellant is entitled for cenvat credit of the same and due to which the entire exercise will amount to revenue neutral. The learned counsel further stated that the Appellant had reasonable belief that the services received by them are covered under IT services and hence, in terms of Section 80, the penalty under section 76 is not imposable when there are two views possible on the basis of interpretation of legal provisions, notifications, circulars, instructions, etc, penalty cannot be imposed. Relying on the decision in the case of Infosys Ltd. vs. CST, Bangalore: 2015 (37) S.T.R. 862 (Tri. - Bang), it has been submitted that in view of the provisions under Section 80, the penalty to be dispensed with. 4. Th....
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....echnology Act, 2000. Section 2 (1) (o) of the Information Technology Act says data means a representation of information, knowledge, facts, concepts or instructions which are being prepared or have been prepared in a formalized manner, and is intended to be processed, is being processed or has being processed in a computer system or computer network, and may be in any form (including computer print outs, magnetic or optical storage, media, punched cards, punched tapes) or stored internally in the memory of the computer. Section 65 (53) of the Finance Act, 1994 'Information' as the meaning assigned to it in clause (v) of sub-section (1) of Section 2 of the Information Technology Act, 2000 (IT Act) and the IT Act Section 2 (1) (v) states 'information includes data, message, text, images, sound, voice, codes, computer programmes, software and data bases or micro film or computer-generated micro fiche;'. Section 2 (1) (j) of Information Technology Act, computer network means the inter-connection of one or more computers or computer systems or communication device through- (i) the use of satellite, microwave, terrestrial line, wire, wireless or other ....
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....uction and pilot environment after fragrances business support systems to perform daily operations for formula management, global project management, creation, regulatory, product library and use all related applications to support the fragrances marketing sales and creation activities. Use of data warehouse systems usage of electronic mail systems, usage of intranet and connection to Internet. Article 3 and 4 Usage of worldwide network, global network management, PC software distribution, implementation and maintenance of IT disaster recovery plan procedures, implementation of IT disaster recovery tests, usage of disaster recovery related network. In addition, they get Technical Support Security Administration and supply of backup procedures application development and support application training, running of local software to perform appellants business and data accuracy management and integration with other local systems of the appellant. 5.3 The services under Article 1 and Article 2 are available 24 hours a day, 6 days a week and the services and Article 3 are available 24 hours a day 7 days a week. The agreement also assures that information will be handl....
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....nstructions which are prepared in a formalised manner and intended to be used or processed in a computer system would get covered under the aforementioned services. In view of the above, based on the services received by the appellant, it is clear that it is not mere Information Technology Services but the services received include whole lot of access to the data worldwide with regard to technology, production and various other services essential for day-to-day manufacturing activities. Therefore, we are in agreement with the Commissioner that the services received by the appellant fall under OIDAR services. The decisions relied upon by the appellant are purely on IT services and hence, they are not applicable for the present set of facts. For instance, in the case of Philips Electronics India Ltd. vs. Commissioner of S.T., Chennai: 2019 (21) G.S.T.L. 450 (Tri. - Chennai), the Tribunal observed as follows: '5.3 The main take away from the definitions is that services provided should facilitate not only online information but also Database Access or Retrieval. From the facts on record, it appears to reason that the infrastructure services are nothing but a spider web group ....
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....updates; (b) software to block banner adverts showing, otherwise known as Banner blockers; (c) download drivers, such as software that interfaces computers with peripheral equipment (such as printers); (d) online automated installation of filters on websites; (e) online automated installation of firewalls. (3) supply of images, text and information and making available of databases; (a) Accessing or downloading desktop themes; (b) accessing or downloading photographic or pictorial images or screensavers; (c) the digitised content of books and other electronic publications; (d) subscription to online newspapers and journals; (e) weblogs and website statistics; (f) online news, traffic information and weather reports; (g) online information generated automatically by software from specific data input by the customer, such as legal and financial data, (in particular such data as continually updated stock market data, in real time); (h) the provision of advertising space including banner ads on a website/web page; (i) use of search engines and Internet directori....
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.... Respondents to levy service tax on a person who is resident in India, but who receives services outside India. In that case till Section 66A was enacted a person liable was the one who rendered the services. In other words, it is only after enactment of Section 66A that taxable services received from abroad by a person belonging to India are taxed in the hands of the Indian residents. In such cases, the Indian recipient of the taxable services is deemed to be a service provider. Before enactment of Section 66A, there was no such provision in the Act and therefore, the Respondents had no authority to levy service tax on the members of the Petitioners-association." Therefore, with effect from 18.04.2006 though the service provider is outside India, the appellant being recipient of services is liable to pay service tax as per Section 66A and Section 68 of the Finance Act, 1994 read with Rule 2(1)(d)(iv) of the Service Tax Rules 1994. In view of the above, the appellant is liable for payment of service tax for the period from 01.10.2006 to 28.02.2008 (Appeal No. ST/951/2010) and for the month of March 2008 (Appeal No. ST/952/2010) under Section 73(1) of the Finance Act, 1994 as hel....