9911796707
TMI Blog2019 (9) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax - Appeal allowed. Business Support Service - amount received from clients for displaying their advertisement on Appellant s website under sale of space or time for advertisement service, SSTA - HELD THAT:- The service received from the stringers is not categorized in any of the activities mentioned in the inclusion part of the definition of BSS under section 65 (104c) of the Act. Service tax, therefore, could not have been levied under BSS. The finding recorded in the impugned order that every service related to business or commerce is classifiable as BSS is not correct. Thus, the demand of service tax under the category of BSS cannot be sustained. Amount received from the client for displaying their advertisement on the website of the Appellant under the category SSTA - HELD THAT:- This is an issue which needs to be examined afresh by the Commissioner on the basis of the documents on record and after providing an opportunity of hearing to the Appellant. Appeal allowed in part and part matter on remand. - HON BLE MR.JUSTICE DILIP GUPTA, PRESIDENT AND HON BLE MR. C.L. MAHAR, MEMBER (TECHNICAL) Ms. Shagun Arora, Advocate for the Appellant Mr. Arun Thaplial, Authorised Repres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Tribunal in United News of India vs. Commissioner of Service Tax, New Delhi, 2017 (51) STR 23(Tri.- Del.) and C.C.E S.T. Indore vs. M/s. Cummins Technologies India Ltd., 2017 (9) TMI 224 CESTAT New Delhi; (ii) The impugned order has confirmed the demand on amount paid to stringers in foreign currency for receipt of news items, under the reverse charge under the category of BSS, holding that said service is covered under the means clause of the definition of BSS in relation to business or commerce under section 65(104c) of the Finance Act. When the service received from the stringers is not categorized in any of the activities itemized in the inclusion part of the definition of BSS under Section 65(104c) of the Act, the question of levying tax thereon under BSS does not arise. Hence, the demand confirmed under this category is not sustainable; (iii) While confirming the demand of ₹ 2,78,658/- for the Financial Year 2009-10 under the category of SSTA on the amount received from customers for displaying their advertisement on the website of the Appellant, the Department has not considered the amount of ₹ 2,61,611/- already paid by the Appellant for the Financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the provisions of this Chapter shall apply: Provided that xxxx xxxx Provided further that xxxx xxxx 11. The Appellant is located in India and is receiving services from Reuters UK and EPA Germany located outside India. Hence, in terms of section 66A of the Act, such service received by the Appellant is deemed as a taxable service and the Appellant is deemed to be a service provider in respect of the said service. Section 66A further provides that all the provisions of Chapter V of the Finance Act shall apply, as if the Appellant is the service provider. The nature of services received by the Appellant from Reuters UK and EPA Germany is no different from the services provided by the Appellant, on which demand of service tax has been dropped by the impugned order. However, the applicability of exemption to the same services received by the Appellant has been denied on the ground that the same is applicable only to a service provider and not to a service recipient. It needs to be noted that under the deeming fiction created under section 66A of the Finance Act, the service recipient, being the person liable to pay tax under reverse charge, is deemed to be a service provider and, ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the notification applicable thereto when the conditions of the said Notifications are fulfilled by the recipient of such service. Accordingly, the finding in the impugned order on this issue is not sustainable. The appeal is allowed on this issue. 13. This decision subsequently followed by the Tribunal in M/s. Cummins Technologies India Ltd. 14. The second issue that arises for consideration is whether the services provided by stringers qualify as BSS. Section 65 (104c) of the Finance Act is reproduced below: Section 65 (104c) support services of business or commerce means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfilment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational or administrative assistance in any manner, formulation of customer service and pricing policies, infrastructural support services and other transaction processing. Explanation.-For the purposes of this clause, the expression infrastructural support service ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
