2005 (7) TMI 3

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..... quiring the display of appellant's logo, fixing of working hours of the PCO, service to Airtel customer etc. She has also emphasized that the Commissioner has held that the relationship between the PCO operator and the appellant is one of agent and principal. In regard to a public telephone, there are three entities - (i) telegraphic service provider (ii) subscriber and (iii) customer/user. It is clear from the definitions in the Act that customers/users of phone are not recognized in the scheme of the levy. The tax is in regard to a telegraphic service provided to the subscriber. Valuation is also based on the gross total amount received by the provider from the subscriber (the receiver of the service). The amendment in 2001 referred t .....

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..... bers shall be the gross total amount (including adjustments made by the telegraph authority from any deposits made by the subscribers at the time of applications for telephone connections or pagers) received by the telegraph authority from the subscribers". 2. The dispute in the present case is about valuation of taxable service in the case of PCOs of the appellant M/s. Bharti Infotel Ltd. The impugned order has held to the effect that the value of the service would be the price charged by the PCO operator from the PCO user (customer). As against the same, the contention of the appellant is that the value of the service is the amount paid by the PCO operator to the appellant. 3. We have perused the record and heard both sides. The contentio .....

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..... O connection(s) are as follows - 1. Initial security deposit of Rs. 2000 per STD/ISD-PCO connection is to be made with Touchtel at the time of signing the "Customer Agreement Form", balance security deposit of Rs. 3000/- payable in equal installments in the first three bills. The deposit amount can be paid by cash/demand draft/pay order in favor of Bharti Telenet Ltd. The security deposit will carry simple interest @ State bank of India FD rate for a duration of one year and the same will be credited to the Touchtel STD/ISD-PCO subscriber's account at the end of the financial year. 2. The billing of the subscriber will be monitored after the end of the first quarter. If the average monthly billing for the monitoring period is higher than Rs .....

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