Key aspects of the telecommunication service provided by the ...

Telecom services taxability: Consideration involved, Cenvat credit disallowance incorrect, extended limitation period unjustified.

Case Laws     Service Tax

September 6, 2024

Key aspects of the telecommunication service provided by the appellants and the related service tax implications. It discusses whether the services were provided with or without consideration, the applicability of the exemption under Explanation 3 to Rule 6(1) of the Cenvat Credit Rules (CCR), the point of taxation, the disallowance of Cenvat credit on inputs and capital goods u/r 6(3)(i) of the CCR, the issue of time limitation and extended period of limitation u/s 73 of the Finance Act, 1994, and the demands for interest and penalty. The Tribunal's findings include that the telecommunication services involved consideration, the exemption under Explanation 3 was not applicable, the disallowance of Cenvat credit on capital goods was incorrect, the extended period of limitation was not justified, and consequently, the demands for service tax, interest, and penalty were set aside.

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