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TMI Blog2008 (7) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... 006 passed by the Commissioner of Central Excise, Pune II. 2. Following five Show Cause Notices are involved in the present case: Sr. No. File No. Date Period Amount (Rs.) (i) VGN (30)/STC/BSNL/02- 1.9.03 April, 1998 to July, 2003 6646008.00 (ii) VGN (30)/STC/BSNL/02-16.9.04 August, 2003 to June, 2004 3683948.00 (iii) VGN (30)/STC/BSNL/02- 21.12.04 July, 2004 to November, 2004 2415440.00 Edn Cess 31965.00 (iv) V (Coin-Ope)15-3/ST/PII/05- 9.3.06 December, 2004 to June, 2005 7204115.00 Edn Cess 144082.00 (v) V(Coin-Ope)15- 60/ST/PII/06- 24.7.06 July, 2005 to February, 2006 6909076.00 Edn Cess 138182.00 3. The Commissioner, after following the necessary adjudication proceedings, has confirmed the service tax demands as proposed in the five show cause notices referred to above, under Section 73 of the Finance Act, 1994. She has also demanded interest under Section 75 ibid and imposed penalties on the appellants under Sections 76, 77 and 78 ibid. 4. Heard both the sides and perused the record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal calls', there are again conflicting versions. According to the appellants, the calls made from the Coin Box PCO are local calls only as STD and trunk calls will not be available in the PCO, whereas the Commissioner has held that not only local calls but some other types of calls like calls to mobile phone (on roaming) can also be made, which cannot be regarded as 'local calls'. For this, the Commissioner has relied on the Indian Telegraph Rules, 1951. As per clause (X) of Rule 2 of the Indian Telegraph Rules, 1951, local call means a call from the subscriber's line to any other line on any exchange within the same exchange system. According to sub clause (k) of Rule 2, "exchange system" means any department telephone exchange or exchanges and any line connected therewith declared by the telegraph authority to be an exchange system. This means that the local calls are made within the same exchanges but when the mobile phones are on roaming, they can be in a different exchange other than the exchange in which the coin box is situated. Hence, calls other than the local calls can also be made from the coin box. 9. The appellants have contended that while confirming the demands, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e charging area as for the calling party. Further, in respect of calls from fixed line to cellular subscriber, the charging area is Long Distance Charging Area (LDCA) due to the fact that local area for the cellular mobile is whole of the Licensed Service Area (LSA) which is co-terminus with the Circle in most of the cases except in metro services areas where it is at SDCA. In other words, in respect of calls made from fixed line to cellular mobile subscriber, the charging area is LDCA, and local area for cellular mobile service is the whole of Licensed service Area which is nothing but the entire Circle or State. Therefore, the calls originating from CCB PCO (basic service) and terminating to cellular mobile subscriber is treated as local call as per the definition of TRAI in the changed environment. The dialing with starting digit of 'o' (STD) and '95' are barred from CCB PCOs and hence no 95 and STD dialing facility is allowed from CCB PCOs. In case mobile calls are made from CCB PCO to cellular mobile subscriber who is roaming beyond the home (Circle or State) LSA (licensed Service Area) say Gujarat then roaming tariff is applicable to the cellular mobile Telephone subscriber ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner has observed that since no definition of "local calls" has been given in the Central Excise law (it should be service tax law), then the definition given in the Indian Telegraph Rules made under Indian Telegraph Act can be resorted to. Moreover, these have statutory value and govern the telecommunication services also. Notification 3/94-ST was issued in 1994, when TRAI was not in existence. Since then there have been technological advancements in the field of cellular phones. The definition of local calls given in "The Telecommunication Interconnection (charges and revenue sharing) Regulations, 1999 (1 of 1999) dated 28.5.1999 and its amendment dated 17.9.1999 which are for the purpose of sharing of the revenue between different telephone service providers cannot be applied for interpretation of words "local calls" given in the Notification No. 3/94-ST. The definition given in the Regulation dated 28.5.1999 and its amendment dated 17.9.1999 does not ipso facto change the definition of local calls given in the Indian Telegraph Rules, 1951. In fact, no amendment has been carried out in these Rules and to claim that these rules have lost their relevance will be a disreg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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