2025 (7) TMI 1982

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....ppeal No. 77/2013-ST dated 25.06.2013 passed by the Commissioner of Central Excise, Customs & Service Tax (Appeals), Cochin. 2. Briefly the facts are that the appellant M/s. Vodafone Essar Cellular Ltd. are engaged in providing telecommunication services and registered under the category of 'Telephone/Telecommunication Services' which are provided in terms of telecom licenses granted by the regulatory authority. On verification of the records, Revenue noticed that the appellant had paid an amount of Rs. 3,90,04,249/- to their foreign service providers on account of international outbound roaming facility under the category of 'Telephone Services' for the period from 15.01.2007 to 30.06.2007 and from 01.07.2007 towards 'Telecommunication ....

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....l has held that the liability to service tax arises only if it is provided by the telegraph authority and since the foreign service providers do not qualify to be a telegraph authority, the question of service tax does not arise. Reliance is also placed on the decision in the case of M/s. Vodafone Idea Ltd. vs. Commissioner of GST and CE: 2023 (10) TMI 432 and M/s. Vodafone Cellular Ltd. vs. CCE, Pune: 2017 (12) TMI 1205. It is also submitted that the entire demand is barred by limitation, since no grounds have been made out for invoking the extended period of limitation. Reliance was also placed on the following decisions: ● M/s. Mega Trends Advertising Ltd. vs. CCE & ST: 2020 (38) GSTL 57 (Tri. - All.) ● M/s.....

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....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 this situation in the instant case since the service provider is located abroad, he is not covered u....

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....006 apply. All pending issues may be decided accordingly. 7. Further vide letter dated 19.12.2011 reproduced below, it was once again clarified that the foreign telecom service provider will remain outside the taxability clause of the Telecommunication Service. Circular - Service Tax Telecommunication service - Clarification on taxability in respect of International Private Leased Circuit (IPLC) Letter [F. No. 137/21/2011 - Service Tax], Dated 19-12-2011 Please refer to the clarifications issued vide Board's letter of even number dated 15-7-2011 on the subject, mentioned above. 2. The matter has been re-examined and it is seen that the IPLC is specifically covered by the definition of the telecommu....