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TMI Blog2008 (9) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... Member (T) Shri B.L. Narasimhan, Advocate, for the Appellant. Shri Sumit Kumar, SDR, for the Respondent. [Order per: S.S. Kang, Vice-President]. - Heard both sides. The applicants filed this application for waiver of pre-deposit of amount of service tax of Rs. 2,38,32,070/- and penalty. 2. Brief facts of the case are that applicants are engaged in undertaking of transmission of energy through inter-State transmission system. The applicants also established Broad Band Telecommunication Network on the transmission infrastructure. The applicant is holder of Infrastructure Provider Category-II licence under first proviso to Section 4 of the Indian Telegraph Act, 1885. The applicants leased bandwidth to various customers includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority in relation to the link established between one telegraph authority and another telegraph authority. Contention is that thereafter the CBEC issued Circular No. 91 /2/2007-S.T. dated 12-3-2007 wherein it has been clarified that inter-connection service provided by one telegraph authority to another telegraph authority is not taxable service. Contention is that w.e.f. 1-6-2007 definition of "telecommunication service" was inserted in Finance Act, 2008 which means service of any description provided by means of any transmission, emission or reception of signs, signals, writing, images and sounds or intelligence or information of any nature, by wire, radio, optical, visual or other electro magnetic means or systems, including the rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly Rs. 7 lakhs. 4. We find that in this case demand is confirmed on the ground that the applicants provided service to various customers. Two customers of the applicants are not registered under the first proviso to sub-section (1) of Section 4 of the Indian Telegraph Act, hence, cannot be considered as telegraph authority. Therefore, prima facie, it is not a fit case for total waiver of pre-deposit of service tax. Therefore, applicants are directed to deposit Rs. 7 lakhs within a period of 6 weeks. On deposit of the above-mentioned amount pre-deposit of remaining amount of service tax and penalty is waived. Compliance to be reported on 13th October, 2008. (Dictated and pronounced in the Open Court) - - TaxTMI - TMITax - Service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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