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TMI Blog2024 (7) TMI 1002X X X X Extracts X X X X X X X X Extracts X X X X ..... gher for prospective customers of the client who desires to know about the product or service of the client. Job of the Appellant is limited only to process of website of the client. It is not covered under OIDAR service as in the said process no information is provided for database access or retrieval. It is an improvement process of the website of the client to keep it on higher ranking. The Appellant does not have any relationship with any viewer, i.e., the person who retrieves or accesses data. The Appellant simple setting up campaign on the Google site hired by its client who uses them for further purposes. OIDAR services are those services which can be accessed by anyone all over the globe. In the instant case, the Appellant provides service only to specific person who in turn uses the same for viewers of world. The nature of service is more akin to Business Support Service. Hence, services in question are not under OIDAR category. The Appellant is also engaged in development of Mobile apps and web design development activities for its clients. Mobile application development is the process of making software for smart phones, tablets and digital assistants. The software can b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng short payment of service tax and it was found that the Appellant had not paid service tax on export services which valued to the differential amount between value declared in service tax returns and Income Tax returns. The Department alleged that said services were of the category of Online Information and Data base Access or Retrieval services OIDAR and as per Rule 9(b) of the Place of Provision of Services Rules, 2012 POPS as was prevalent prior to 01.12.2016, the place of provision of service in case of OIDAR was location of the service provider. Rule 9(b) of POPS Rules, 2012 relating to OIDAR was, however, deleted vide Notification No.46/2016 ST dated 09.11.2016. As the Appellant is located in India, the OIDAR services provided by him were not treated to have been provided out of India and as such not to be treated as export of services in view of Rule 6A of the Service Tax Rules, 1994. The claim of the Appellant for exemption of service tax on said services on account of export was denied and demand of service tax was raised. 3. The case was adjudicated by the Pr. Commissioner, CGST Noida vide the impugned order and claim of the Appellant for exemption from Service Tax on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his case is whether services provided by the Appellant during the period 01.04.2015 to 30.11.2016 were classifiable under category of OIDAR. We find that OIDAR service was defined under Rule 2(l) of the POPS Rules, 2012, during the said period, as below:- (l) online information and database access or retrieval services means providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network; 8. An insight reading of the above definition reveals that OIDAR service would be that service where data or information for access or retrieval was provided in electronic form through computer network. Term data and information are defined in the Information Technology Act, 2000 as below:- data means a representation of information, knowledge, facts, concepts or instructions which are being prepared or have been prepared in a formalised manner, and is intended to be processed, is being processed or has been processed in a computer system or computer network, and may be in any form (including computer printouts magnetic or optical storage media, punched cards, punched tapes) or stored internally in the memory of the computer; information includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Google, Microsoft Bing etc. is increased. The process optimize search engine results of the client s website. After processing of the website, it is uploaded to client s server. Website visibility is commonly measured by the placement or ranking of the site on search engine results pages. The above process of search engine optimization is not providing any information and database for retrieval but it is a technological change in website of the client to rank it higher for prospective customers of the client who desires to know about the product or service of the client. Job of the Appellant is limited only to process of website of the client. It is not covered under OIDAR service as in the said process no information is provided for database access or retrieval. It is an improvement process of the website of the client to keep it on higher ranking. It is basically a support service to the clients of the Appellant. Support services as understood in common parlance are provided in relation to business or commerce and for evaluation of prospective customers, telemarketing, processing of purchase orders and fulfillment services. Search engine optimizing services provided by the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided by the appellant are not similar to those provided by the internet service provider. In this connection, we would like to refer to another taxable introduced with effect from 1.7.2007, it is called Telecommunication Service. 11. In view of the above judicial decisions, we are of the view that Search Engine Optimization service would not be classified as OIDAR service. 12. We find that in Google ads service /Pay per click service, the Appellant s client purchases space from Google and provides advertisement contents to the Appellant who in turn set up the campaign of the client on such space and charges from its client per click wise made by the end customers. The Appellant job is to set up campaign of the client by developing page on Google site. 13. We find that the Appellant only provides digital contents on site of the Google who makes data base and viewers get access or retrieval only from data base of Google. The Appellant does not have any relationship with any viewer, i.e., the person who retrieves or accesses data. The Appellant simple setting up campaign on the Google site hired by its client who uses them for further purposes. OIDAR services are those services which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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