2017 (12) TMI 841

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..... or BSNL who is providing telephone service to the ultimate consumers. Inter-connectivity is between the telecom operators only - there is no legal justification to deny the credit on such input service which are essentially required for providing telecommunication service of further inter-connectivity and telephony - appeal allowed - decided in favor of appellant.
Mr. S.K. Mohanty, Member (Judicial) And Mr. B. Ravichandran, Member (Technical) Shri R. S. Sharma, Advocate & M.S. Nimesh, Consultant for the appellant Shri Sanjay Jain, DR for the respondent ORDER Per: B. Ravichandran 1. The appellant is aggrieved by the order dated 13/01/2014 of Commissioner of Central Excise, Jaipur. The appellant is engaged in providing telecommunicati .....

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..... elephone services. They are discharging Service Tax on telecommunication service in terms of Section 65 (109 a). For providing telecommunication service inter-connectivity with other telecom service providers is necessary. The appellant is entrusted with the work of arranging inter-connectivity services with other telecom operators. They received such inter-connectivity services and also provide such inter-connectivity services which is a part of overall telecommunication operation. The present denial of credit is only on the ground that the inter-connectivity service provided by the appellant to the other telecom services being output service has no nexus with inter-connectivity services received by the appellant from other telecom operato .....

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..... nter-connectivity should be used for output inter-connectivity and if such direct connection is not there then the Cenvat Credit of tax paid on input inter-connectivity shall be denied. This proposition is not factually or legally sustainable. Inter-connectivity of services of various telecom operators is a basic requirement for providing telecommunication service. No telecom operator operates alone. In the present case DGM (Maintenance) is managing inter-connectivity inward as well as outward for BSNL who is providing telephone service to the ultimate consumers. Inter-connectivity is between the telecom operators only. We find no legal justification to deny the credit on such input service which are essentially required for providing telec .....

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