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TMI Blog2025 (1) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... tor Asia Pacific Pte Ltd, Singapore is not involved in the generation or the usage of data. In these circumstances, when Toyota Motor Asia Pacific Pte Ltd, Singapore maintains the functioning of the network, we cannot say that Toyota Motor Asia Pacific Pte Ltd, Singapore provided 'online information and data access or retrieval' services to the appellant to demand service tax under Reverse Charge Mechanism (RCM). Since the issue is squarely covered by the decisions as stated above, the appeal filed by the appellant is sustainable. Conclusion - The appellant's activities were not classifiable under OIDAR services, and thus not liable for service tax under RCM for the period in question. Appeal allowed. - HON'BLE MR. P.A. AU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ware and software and also shared running cost. The Appellant also remitted the consideration i.e. shared initial cost of hardware/software and running cost to the foreign company. 3. Pursuant to audit of the records of the Appellant by the Department, it is observed that the appellant is liable to pay service tax under Section 66A, of the Finance Act, 1994 on the amounts remitted to Toyota Motor Asia Pacific Pte Ltd, Singapore. However, the appellant agreed to pay service tax only in respect of shared running cost of the facility for the period from 18.04.2006 onwards. Accordingly, they remitted service tax of Rs. 4,72,201/- with interest of Rs. 54,225/-. 4. The adjudication authority as per the impugned order dated 24.06.2009 confirmed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant; the appellant has utilised the computer network facility to generate, store and access their own data and information pertaining to their business operations. The learned counsel also drew our attention to the contract entered by the appellant with overseas entity, where it is specifically stated that:- Whereas; (A) USER desires to be availed the use of certain facilities, which shall include but not be limited to servers and networking facilities ( Facilities ) located in Singapore, for the purpose of accessing, utilizing and otherwise receiving the advantage of certain data, software and other applications and/or processes in connection with certain business transactions ( Purpose ), the detailed scope of which will be as separatel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement and they have been procured and paid for by the Andhra Pradesh Government separately. We also find that the user data is generated by the Andhra Pradesh Government and is transmitted through the leased, lines by the Andhra Pradesh Government with the help of the equipments owned by the appellant and received by users connected to the ports of APSWAN. As such, it is seen that appellant is not involved in the generation or the usage of data. In these circumstances, when part of the entire network is supplied by the appellant, who maintains the functioning of the network, we cannot simply say that the appellant provided online information and data access and retrieval services . 8. Learned counsel further submitted that the issue is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for wireless WAN environment, Directory services for listing etc. Some of these services which can be availed by Philips locations and employees are of the nature of Calendaring and Scheduling Directory, Philips e-mail, file back-up etc. In any case, all these infrastructure services are only in the nature of providing intra connectivity between Philips locations worldwide and the payments made are obviously then for sharing of the maintenance cost between the Philips' units and not as fees for supply of online information or retrieval of data from the portal . 9. Learned Authorised Representative (AR) for the Revenue reiterated the findings in the impugned order and also submitted that as per the agreement made by the appellant with o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter of United Telecom (supra), ownership of the data is relevant to consider classification of the service. From the contract, it is evident that that Toyota Motor Asia Pacific Pte Ltd, Singapore is not involved in the generation or the usage of data. In these circumstances, when Toyota Motor Asia Pacific Pte Ltd, Singapore maintains the functioning of the network, we cannot say that Toyota Motor Asia Pacific Pte Ltd, Singapore provided 'online information and data access or retrieval' services to the appellant to demand service tax under Reverse Charge Mechanism (RCM). Since the issue is squarely covered by the decisions as stated above, the appeal filed by the appellant is sustainable. 13. Accordingly, the appeal is allowed wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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