2008 (11) TMI 197 - AT - Service Tax

Telephone Services Inter Connectivity Usage Charges (IUC) service tax was not leviable during the relevant period demand not sustainable

Summary

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the Appellant regarding the leviability of service tax on Inter-connectivity Usage Charges for the period July 2001 to September 2002 and February 2003 to October 2003. The Tribunal set aside the tax demand, stating that service tax is not applicable to IUC before the amended definition of 'telecommunication service' in the Finance Bill 2007. The demands were found to be prior to this amendment, making them not sustainable. The impugned orders were set aside, and both appeals were allowed with consequential relief.