2008 (5) TMI 94

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..... ion usage, no service of telephone connection is provided to recipient telegraph authority - as long as service is not provided directly to a subscriber (as mentioned above), the service may not fall in the category of telephone service - Therefore, IUC would not be taxable - ST/89 of 2007 - ST/85 of 2008 - Dated:- 7-5-2008 - M. Veeraiyan, Member (T) and P. K. Das, Member (J) Anurag Rishi .....

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..... for the period prior to the dates when the amended definition of 'telecommunication service' comes with effect vide Finance Bill, 2007. The relevant portion of Board's Circular is reproduced below :— "3. As stated above, the interconnection usage service is provided by one telegraph authority to another telegraph authority. In terms of the existing definition in the Finance Act, 1994, 'telephon .....

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..... 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." 4. In view of the above discussion, we find that demand of tax on IUC is not sustainable. The impugned order is set aside. Appeal is allowed with consequential relief. Stay petition also stands disposed of. - - TaxTMI - TMITax .....

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