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2013 (12) TMI 1016 - AT - Service TaxDemand of service tax - Telecommunication service - For providing telephone service to customers while they roam abroad the appellants took service from foreign operators outside India - Revenue demanded tax on receipt of service from foreign operators - Held that:- C.B.E. & C. has clarified vide letter F.No. 354/148/2099-TRU, dated 16-7-2009 that even for services liable to tax under Section 66A the charging section is Section 66. Section 66A is only for the purpose of casting the responsibility to pay tax. Firstly the service should be taxable as per provisions of Section 66, that is firstly, the requirement of Section 65(105)(zzzx) has to be satisfied. We further note that this issue has been specifically clarified by C.B.E. & C. vide Circular No. 137/21/2011-S.T., dated 15-7-2011, with reference to “telecommunication service”. Charging section is Section 66 and therefore, for such service to be taxable the service has to be provided by a telegraph authority. It is not sufficient that the recipient is a ‘telegraph authority” even in situations covered by Section 66A. Further when the clarifications issued by C.B.E. & C. as pointed out above are taken into account, there is prima facie no merits in the contention of Revenue - Stay granted.
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