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2018 (10) TMI 88 - AT - Service TaxOnline Information and Data Retrieval services - Levy of Service Tax - transaction of assignment of the receivables by the respondents to the assignee - recipient of services - Whether the transaction under consideration, i.e. the assignment of debt by the respondents to the assignee is a service liable for tax under the category of taxable services? Held that:- Undisputed fact is that RCOM was recipient of certain services from RIL which included the services of sale of handsets to the customers of RCOM. RIL was the provider of services and selling the handsets to customers of RCOM in respect of which the outstanding dues has arisen. These outstanding dues amounting to ₹ 3901 Crores were assigned by M/s RIL to M/s SESPL for a consideration of ₹ 3426 Crores. SESPL paid the entire amount of ₹ 3426 Crores to RIL 26.03.2004. Later on SESPL got merged with M/s RCIL the respondent, and all the assets including the receivables assigned by the RIL became assets in the hand of RCIL. RCIL after writing of the bad debts and other adjustments reduced the net receivables to ₹ 1212.12 Crores and assigned the same to Mahimna and Traitrya for a consideration of ₹ 297 Crores. Thus in fact the transaction between the respondents and assignee is one of the assignment/ sale of receivables for a consideration and not one of providing the taxable service under the category of “Online Information and Data Retrieval” services. In the entire appeal revenue has challenged the order of Commissioner on the ground that Commissioner has failed to cause the verification of the documents, and have sought the matter to be remanded back to the adjudicating authority for causing the verification of the documents - the said ground of verification is not sustainable as all the documents relating to said transaction ₹ 297 Crores were before the Commissioner and only after consideration of the said documents he has arrived at the findings. Since no service has been provided by the respondents in the present case under the category of “Online Information and Data Retrieval” services under the transaction under consideration, there is no merit in the appeal filed by the revenue. Appeal dismissed - decided against Revenue.
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