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2019 (8) TMI 324 - CESTAT NEW DELHILeased Circuit Services/ Telecommunication Services - Reverse Charge Mechanism - remittances made by the appellant as monthly rentals charged by foreign internet service providers for procuring bandwith - HELD THAT:- Such foreign internet service provider are not Telegraph authority, which is a condition precedent for levy of service tax. Admittedly, the provider of such service is not a Telegraph authority under the Indian Telegraph Act - no taxable service is rendered by the foreign service provider and accordingly no amount of tax is payable. Demand of service tax - rental charges charged by the appellant from its customers for the rent of its wireless routers/ radio - HELD THAT:- Admittedly, this activity qualify as deemed sale of goods as the said activity tantamount to ‘transfer of right to use these goods’. Admittedly, in the transaction, the goods in question were delivered by the appellant and the effective possession and control of the goods have been given. Thus, the said activity amounts to sale, on which admittedly appellant have paid VAT / sale - no service tax is payable by the appellant on the rental of wireless/ router or radio. Demand of service tax - rental/ lease charges (Interconnectivity Charges), charged by the appellant from other ISP for the rent/ lease of its optical fibre cables - HELD THAT:- It is a service provided by one Telegraph authority to another - Service Tax under the provisions of lease circuit service or telecommunication service is exigible only when service is provided by a Telegraph authority to a subscriber. This has also been clarified by the CBEC vide Circular No. B/11/1/2001-TRU - no service tax payable. Online Information and Database Access or Retrieval Services - amounts received by the appellant for the sale of domain names to various customers - HELD THAT:- Demand of Interest and penalties - HELD THAT:- The transaction in domain name is a transaction in property in the goods and amounts to transaction of sale of goods - Domain name are akin to trade mark, making them the property of the person who owns it - service tax not attracted. Appeal allowed - decided in favor of appellant.
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