9911796707
TMI Blog2008 (5) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... vice provider - It is not a service provided directly to a subscriber - While providing service of interconnection usage, no service of telephone connection is provided to recipient telegraph authority - hence interconnectivity usages charges would not be liable to service tax under “telephone service” - ST/66/2007 - 676/2008 - Dated:- 30-5-2008 - Dr. S.L. Peeran, Member (J) and Shri T.K. Jay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax on Interconnectivity Usage Charges of Rs. 18,82,75,501/-. The service tax payable on the amount works out to Rs. 1,92,04,101/- which includes the Education Cess of Rs. 3,76,551/-. There was allegation of suppression of facts. The adjudicating authority confirmed the demand. Interest under Section 75 of the Finance Act, 1994 was demanded. Penalty equal to the service tax was levied under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority or a telex had been provided by the telegraph authority. From the above definition, it is clear that the service provided by the telegraph authority which includes a licence holder who provides telephone connection to a subscriber above is taxable. The interconnectivity provided by BSNL to other telephone service providers who are licence holders is not a taxable service since these service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances, interconnectivity usages charges would not be liable to service tax. This is clear from the Board's Circular dated March 12, 2007 [reported in 2007 (79,) RLT M14]. Para 3 of the clarification is reproduced herein below: 3. As stated above, the interconnection usage service is provided by one telegraph authority to another telegraph authority. In terms of the existing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he category of service. Opinion of Law Ministry/Attorney General has also been obtained in the matter. Law Ministry and Attorney General have opined that IUC is not taxable in any of the existing taxable services. In view of the above clarification, we allow the appeal with consequential relief. (Operative portion of the order has been pronounced in the court on completion of hearing.) - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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