2018 (9) TMI 1273

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..... not liable to pay service tax on the amount received from Punjab Government for renovation of Technical Programme given by them for Excise and Taxation Technical Service Agency. The services provided by the appellants do not qualify as ‘Business Auxiliary Services’, therefore, the demands against the appellants are set aside - appeal allowed - decided in favor of appellant.
Mr. Ashok Jindal, Member (Judicial) And Mr. Anil G. Shakkarwar, Member (Technical) Shri B. L. Narsimhan (Adv.) & Shri Utkarsh Malviya (Adv.) for Appellants Shri Rajeev Ranjan (Addl. Commr.) AR for Respondent ORDER Per: Ashok Jindal The appellant is in appeal against the impugned orders wherein demand of service tax under the category of 'Business Auxiliary Se .....

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..... der:- "13. First we take up the issue of demand of Service Tax under the category of Business Auxiliary Service. The definition of BAS is reproduced below; Section 65(19) 'Business Auxiliary Service' means any service in relation 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) Procurement of goods or services, which are inputs for the client or (iv) Production or processing of goods for, or on behalf of the client; or (v) Provision of service on behalf of the client; or (vi) A service incidental or auxiliary to any activity specified in sub-clause (I) to (VI) such as billing, issue or collection or r .....

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..... onnection has been sub-contracted to HSCL. The agreement with HSCL is to provide. Establish and operate Wide Area Network (WAN) using a mix of Land Optical Fibre Network and VSAT based network to provide the connectivity as a whole with required equipment, and bandwidth as per the agreement between CMC and ETTSA. 15. The nature of the above activity is evidently in the form of system networking, since it involves interconnection of the computer systems working in 98 different sites by set up of Wide Area Network. The Explanation which is appended at the end of the definition in Section 65 (19) for BAS explains what constitutes 'Information Technology Service'. One of the activities subsumed within the IT service is the activity of "system .....

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