2023 (3) TMI 332 - AT - Service Tax

Classification of services - services availed by the Appellant from Verizon Inc (located outside India) - classifiable as ‘Internet Telecommunication Service’ or are classifiable as ‘Leased Circuit Service’ (upto 31 May 2007) and there after ‘Telecommunication Service’, having been provided by an entity not qualifying to be a Telegraph Authority - Cenvat credit of alleged service tax liability - extended period of limitation - penalty - revenue neutrality - HELD THAT:- The issue herein is squarely covered by the precedent ruling of this Tribunal, co-ordinate bench in TCS E-SERVE LTD. VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI [2014 (6) TMI 655 - CESTAT MUMBAI]. In the facts of the said case TCS E-Serve was engaged in providing call centre services, collection and sales services and computerised data processing services to various customers in India and abroad, were registered with the department of service tax under the category of ‘BAS’ & ‘BSS’ - This Tribunal held that service tax liability does not arise under Section 66A of the Finance Act, if service is not specified under Section 65(105) of the Finance Act.

Applying the ratio, the Tribunal held that it is not enough that the service provider provides lease services but it should also be a ‘Telegraph Authority’ as defined in the Act. Unless both the conditions are cumulative satisfied, service tax levy is not attracted.

Appeal allowed - the question of limitation left open.