2025 (8) TMI 1209

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....t. Ltd.) filed this appeal against Order-in-Original No. 147/2011 dated 30/8/2011 passed by the Commissioner of Service Tax, Bangalore. 2. Briefly the facts are that the appellant was rendering services under the category of Business Auxiliary Services. During scrutiny, the Revenue observed that certain expenditures in foreign currency was received for leased circuit services/telecommunication services from abroad. These services were classified as Business Support Services and accordingly, the demand for the period May 2006 to March 2008 was confirmed invoking the proviso to Section 73 (1) of the Finance Act, 1994. Further, it was noticed that the appellant had availed and utilized cenvat credit on insurance services which was not an elig....

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....n the case of Hindustan Construction Company Ltd. vs. CST, Navi Mumbai: (2025) 27 Centax 299 (Tri.-Bom.) and upheld by the Hon'ble Apex Court. Also relies on the decision in the case of NCR Corporation India Pvt. Ltd. vs. Commissioner of Central Tax: 2021 (55) GSTL 6 (Tri.-Bang.). It is also submitted that under the pre-Negative List era, the data link/leased circuit is covered by Telecommunications Service under section 65(109a) Clause (iv) and hence, it cannot be considered as Business Support Service. Reliance is placed on Vodafone Essar Mobile vs. CST, Delhi: 2017 (6) GSTL 67 (Tri.-Del.) and Expeditors International India (P) Ltd. vs. CST: 2015 (40) STR 930 (Tri.-Del.). 3.2 With regard to cenvat credit claimed by the appellant on insur....

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.... no nexus with the output service also to be sustained. Since these facts had come to the knowledge of the Revenue only after the visit of the audit party, extended period of limitation is rightly invoked. 5. Heard both sides. The period of dispute is from May 2006 to March 2008. There is no dispute that the appellant had been rendering leased circuit services/telecommunication services to Singtel Singapore and these services are classified as Business Support Services. As per the definition of Telecommunication Services, the leased circuit services are rightly classifiable under Telecommunication Services and not under Business Support Services. This fact has been upheld by various decisions as is held in the case of Vodafone Essar Mobile....

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....llipore India Pvt. Ltd.: 2012 (26) STR 514 (Kar.) dated 11.4.2011 wherein the Hon'ble High Court observed as: " 7. That apart, the definition of input services is too broad. It is an inclusive definition. What is contained in the definition is only illustrative in nature. Activities relating to business and any services rendered in connection there- with, would form part of the input services. The medical benefit extended to the employees, insurance policy to cover the risk of accidents to the vehicle as well as the person, certainly would be a part of the salary paid to the employees. Landscaping of factory or garden certainly would fall within the concept of modernization, renovation, repair, etc., of the office premises. At any rate, t....