TaxTMI 
TaxTMI 
2026 (8) TMI 1215
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....dent is presently functioning under the jurisdiction of Commissioner of CGST & Central Excise, Mumbai South Commissionerate at the address provided in such application. Considering the above factual position, we allow the application and the changed name and address of the appellant has been incorporated in the appeal. Registry is directed to note the changed name and address of the appellant for official record. 2. This appeal has been filed by the Commissioner of CGST & Central Excise, Mumbai South Commissionerate (herein after, referred to as "the appellant", for short) in pursuance to Review Order No.10/Review/CCO/ S.TAX/2017 dated 01.05.2017 passed by Committee of Chief Commissioners assailing the Order-in-Original No. 01-02/STA-I/SN/16-17 dated 06.01.2017 passed by the Commissioner of Service Tax-I, Mumbai (herein after, referred to as "the impugned order") passed by the Commissioner of Service Tax Audit-I, Mumbai, in context with show cause proceedings initiated against respondent-assessee M/s Tata Communication Limited, Mumbai. 3.1 Brief facts of the case are that the respondent herein is inter alia, engaged in providing International Long Distance, Enterprise Data an....
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.... Reverse Charge Mechanism (RCM) basis. In support of their stand he relied upon the decision of the Tribunal in the case of Ushodaya Enterprises Private Limited Vs. Commissioner of Customs, Central Excise & Service Tax, Hyderabad - 2020 (42) G.S.T.L. 84 (Tri. - Hyd.). Therefore, he justified the appeal filed by Revenue for setting aside the impugned order. 5.1 On the other hand, Learned Counsel stated that the respondent had entered into agreements with FSSPs viz., M/s Inmarsat Global Limited, Intelsat, Thaicom Public Company Limited and others for providing Telecommunication services via 'Space Segment' i.e., satellite and all other centralised infrastructure owned, leased or operated by or on behalf of the said FSSPs. The above clause in the agreement proves beyond doubt that the services availed by the Respondent are Telecommunication services and the infrastructure for the said purpose is owned, leased or operated by the service provider of the Respondent. He further stated that the said infrastructure is not made available to the Respondent, but only Telecommunication service is provided to the Respondent by the service provider with the use of such infrastructure. Therefor....
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....1688 (Tri Del); (iv) TCS E- Serve Ltd. Vs. Commissioner of Service Tax, Mumbai - 2014 (33) STR 641; (v) Vedic Broadcasting Limited vs Commissioner of Customs, C. Ex. & S.T., Dehradun - 2021 (45) GSTL 33 (Tri -Del.). 6. We have heard both learned Authorized Representative of the Department and the learned Counsel appearing for the respondent and perused the case records and the synopsis given in the form of written submissions. 7. The issues for consideration before the Tribunal are as under: - (a) whether the services availed by the respondent in the nature of capacity of the transponder on a lease basis in the form of frequency bandwidth provided by the Foreign Satellite Service Providers ('FSSPs'), is liable to service tax in terms of the Finance Act, 1994 or otherwise? (b) Whether the show cause proceedings dropped in the impugned order is sustainable or not? 8.1 Learned Commissioner had examined the issues in dispute and had come to a conclusion that the respondent-assessee as recipient of telecommunication service from FSSPs is not liable for payment of service tax. Relevant paragraphs of the impugned order providing such conclusion....
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....rvices received by the noticee is liable and classifiable under the BSS as defined under Section 65(104c). 37.13 Further, in TCS E-Serve Ltd. Case supra, the case before Tribunal was demand of service tax under the taxable service. "Lease Circuit" during the period 01.04.2003 to 01.03.2009. While relying on Board Circular dated 15.07.2021, Hon'ble Tribunal has set aside demand under the "Leased Circuit" service, holding that the impugned service was classifiable as a telecom service and since the service is not provided by a telegraph authority, the service itself is not taxable. In view of the above, I pass the following order. ORDER I drop the proceedings initiated vide SCN No. F. No. V/ST/Dn.II/Gr.VIII/ TC/55/10/2605 dated 20.10.2011 and Show Cause Notice vide F. No. V/ST/Dn.II/Gr.VIII/ TC/55/10/5117 dated 17.08.2012." 8.2 On perusal of the facts of the case, it is seen that the respondent is providing long distance, enterprise data and internet services to their customers by using the band width of transponders. Such transponders are used for enabling communication through satellite relays, offering a way to reach distant locations and support m....
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....No.137/21/2011Service Tax dated 19.12.2011 that such instruction is erroneous and have corrected the same. The extract of the said instruction is given below: "Please refer to the clarifications issued vide Board's letter of even number dated 15.07.2011 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 telecommunication service given in clause 65(109a)(iv) of the Finance Act, 1994. As per the said section these services are taxable only when 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, 1985. It is only because the foreign telecom service provider cannot constitute a telegraph authority under an Indian law that they remain outside the taxability clause of the telecommunication service. 3. Therefore, the view taken in the said letter that what otherwise constitutes a "telecommunication service" would amount to "business support service" is erroneous. 4. The clarification issued vide the above mentioned letter stands corrected accordingly." From the above dis....
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....e. - (1) For the purposes of this Chapter, classification of taxable services shall be determined according to the terms of the sub-clauses of clause (105) of Section 65. (2) When for any reason, a taxable service is, prima facie, classifiable under two or more sub-clauses of clause (105) of Section 65, classification shall be effected as follows :- (a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description; (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, insofar as this criterion is applicable; (c) when a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merit consideration." 77. A bare perusal of Section 65A(1) shows that classification of 'taxable services' shall be determined according to the terms of the sub-clauses of Clause (105) of ....
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....ty i.e. transponder capacity and out of the said transponder capacity available on the said satellite, they allocate some capacity to their customers for a consideration. The ld. Commissioner in the impugned order has also examined all the submissions made herein before us by the ld. Counsel for the respondent and after examining all the submissions, the ld. Commissioner has held that the services provided by M/s Intelsat are 'Telecommunication Services' which are not taxable during the relevant period. xxx xxx xxx xxx 8. Further, after considering the definition of 'Telecommunication Services' as provided under the Act and the clarification made by the Board vide its Instruction dated 15.07.2011 which clarifies that telecommunication services are taxable only when it is provided by a person who has been granted a license under Section 4(1) of the Telegraph Act, we find that M/s Intelsat is not covered under the definition of telegraph authority as per Section 4(1) of the Telegraph Act and therefore, the services provided by M/s Intelsat are not taxable as M/s Intelsat is not a telegraph authority. xxx xxx xxx xxx 13. We also find that in the case of Vedic B....