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TMI Blog2020 (10) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness support service and the demand raised under the said category was unsustainable - the appellant cannot be held to have received the services of infrastructural support service and no tax liability would rest upon them. Time limitation - HELD THAT:- The demand is also barred by limitation. The issue involved is a complex issue involving interpretation of law and in the absence of any evidence to reflect mala fide on the part of the appellant, extended period would not be available to the Revenue. As such, demand along with penalty is set aside on limitation also. The appeal is allowed on merits and also on limitation. - Service Tax Appeal No.56357 of 2013, 56838 of 2013 - FINAL ORDER NO.70267-70268/2020 - Dated:- 20-2-2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into another contract with M/s Asia Today Ltd., Mauritius for up linking the contents of their T.V. programmes to the transponders which have been allowed by the Appellant to be utilized by M/s. Asia Today Ltd. The dispute in this case is about hiring of transponders by the Appellant from M/s. B.T. Singapore Pte. Ltd. for which the payment is made by them in foreign currency. According to the Department the service provided by M/s. B.T. Singapore Pte. Ltd. to the Appellant is Infrastructural Support Service taxable under Section 65(105)(zzzq) read with Section 65(105)(104c) of the Finance Act, 1994. Since the Appellant have received this service from an offshore service provider, they would be liable to pay service tax under the reverse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellants, pleaded that as clarified by the CBEC in its Circular No.334/04/06-TRU, dt.28.02.2006, the Support Service of Business or Commerce brought within tax net by the Section 65(105)(zzzq) read with Section 65(104C) of the Finance Act, 1944 are those services which Business entities outsource for use in Business or Commerce and these services include transaction processing, routine administration or accountancy, customer relationship management and tele-marketing etc. and also the services of office infrastructure known as Business Centre Services which are provided by some business entities; that from this Circular of the TRU, it is clear that the services covered under section 65(105)(zzzq) are those which are a Support Services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n covers only the services which are of supporting nature to the main business including office infrastructure service, as in terms of the principle of noscitur-a-sociis, the expression services in relation to Business or Commerce would get its colour from the inclusive portion of the definition; that the hiring of transponder capacity by the Appellant from M/s. B.T. Singapore Pte. Ltd. is not taxable as supply of tangible goods services covered under section 65(105)(zzzq), as even if this activity is treated as supply of tangible goods service covered under Section 65(105)(zzzzj), provided by M/s. B.T. Singapore Pte. Ltd., the appellant could not be treated as importer of the service into India in terms of Rule 3(1)(iii) of Taxation of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the same has to be treated as a Support Service for their business of up linking, that the principle of noscitur-a-sociis has been wrongly applied for ascertaining the scope of the support service of business or commerce , as defined under section 65(104c) of the Finance Act, 1994; that the ratio of the Apex Court s judgment in the case of Godfrey Philip India Vs. State of UP (Supra) relied upon in the Tribunal s judgment in the case of Air Liquide North India P. Ltd. (Supra) is not applicable to the facts of this case; that the service received by the Appellant from M/s. B.T. Singapore is, therefore Support service of business or commerce covered by section 65(105)(zzzq) read with section 65(104c); that since the appellant have re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to section 65(105c). However, the Tribunal in the case of Air Liquide North India Pvt. Ltd. (Supra), relying upon the Apex Court s judgment in the case of Godfrey Philip India Vs State of UP. (Supra) held that while interpreting the scope of the expression Support Service of Business Commerce under Section 65(105c) and also of the term Infrastructural Support Service in Explanation to Section 65(104c), the principle of noscitu-a-sociis would be applicable and accordingly the expression Support Service of Business or Commerce as defined under section 65(104c) would cover only the service which are of supporting nature to the main business, like services relating to custom relationship, evaluation of prospective customers, tele-m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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