The case pertains to the classification of services provided by ...

Ruling Confirms Services as 'Telecommunication', Exempting Tax; Extended Limitation Dismissed Due to Lack of Fraudulent Intent.

October 18, 2024

Case Laws     Service Tax     AT

The case pertains to the classification of services provided by M/s Intelsat to the respondent as either 'Telecommunication Services' or 'Support Services for Business or Commerce'. The respondent claimed the services fell under 'Telecommunication Services' exempted from service tax before June 2012, while the department alleged they were operational/infrastructural support services taxable as 'Support Services for Business or Commerce'. The Tribunal held that the transponder service involving supply of satellite capacity to be managed by the customer qualifies as 'Telecommunication Services' based on detailed reasoning, finding no infirmity in the Commissioner's order. Regarding the extended period of limitation, the Tribunal ruled it cannot be invoked as the department failed to establish fraud, collusion, willful mis-statement, suppression of facts, or contravention with intent to evade tax. Even if taxable, the respondent could have availed input tax credit, rendering the situation revenue neutral, negating any mala fide intention. Consequently, the Tribunal dismissed the Revenue's appeal.

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