9911796707
TMI Blog2013 (12) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... vice (BAS) - BSS came into existence with effect from 01.05.2006 but period of dispute in the present appeal being the levy of service tax on carriage fee is for the period 2003-2004 and 2004-2005 that is prior to 01.05.2006 - activity of appellant in respect of carriage fees is liable to service tax under Business Auxiliary Service - Decided against assessee. Whether income received on account of Lease Rental on fiber optic cable network will be covered under Lease Circuit Service - Held that:- Commissioner (Appeal) in the impugned order has confirmed demand for entire period under the category of Telecommunication service. Since the Show Cause Notice was issued to the appellants under category of lease circuit service, lower authoritie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Rental OFC-R. Service tax has not been paid on these incomes received on fiber optic cable network laid across Delhi given on lease which is covered under Lease Circuit Service with effect from 16.07.2001 as cable hiring services are liable for service tax under category of Leased Circuit Services. Services provided by the appellants are in respect of speech circuit that is voice circuit and data circuit as per agreement/contract with M/s SIFY Limited. On this basis Show Cause Notice demanding service tax amounting to Rs. 44,66,904/-, Education Cess of Rs. 85,820/- and Higher Education Cess amounting to Rs. 10,424/- along with interest and proposing the penalties was issued to the appellants. The notice was adjudicated vide Order in Origi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffect from 10.09.2004 the Business Auxiliary Services has been defined as vide Finance (No. 2) Act, 2004 as under:- Business auxiliary service means any service in relations to,-- (i) Promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) Promotion or marketing of service provided by the client; or (iii) Any customer care service provided on behalf of the client; (iv) Procurement of goods or services, which are inputs for the clients; or Explanation -For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, inputs means all goods or services intended for use by the client; (v) Production or processing of goods for, or on behalf of, the client; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o operation of computer systems; (19a) business exhibition means an exhibition,- (a) To market; or (b) To promote; or (c) To advertise; or (d) To showcase; or Any product or service, intended for the growth in business of the producer or provider of such product or service, as the case may be; Carriage fees is charged by the appellants from different channels for providing them desired frequency for broadcasting their channel s signals. The question is whether by doing so, there is any promotion or marketing of channels. Appellants are undertaking the placement of channels of different broadcasters at desired frequency and carry the channel to the viewers through own cable network and by doing so, appellants facilitate bette ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of carriage fees is liable to service tax under Business Auxiliary Service and we do not go into issue of classification of service under Business Support Service as it was not in existence during the period of dispute in the case. 8. As regards invoking extended period in case of BAS, lower authorities held that taxable value has been suppressed by the appellants. On the other hand appellants claim that they were regularly filing ST 3 returns. It is not clear from orders of lower authorities whether value of carriage fees was reflected in gross value and exempted value of service. We find on the aspect of invoking extended period and consequently imposition of penalty including invoking of Section 80 matter needs to be re-exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o a leased circuit. Telegraph authority is defined as under:- Telegraph authority has the meaning assigned to it in clause (6) of section 3 of the Indian Telegraph Act, 1885 and includes a person who has been granted a license under the first proviso to sub-section (1) of Section 4 of that Act. Subscriber is defined as under:- Subscriber means a person to whom any service of a telephone connection or a facsimile (FAX) or a leased circuit or a pager or a telegraph or a telex has been provided by the telegraph authority. 11. We find that in case of Lease Circuit Service, services provider is Telegraph Authority and service recipient is subscriber. Original authority has not discussed anything about appellant being a Telegraph auth ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
