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2023 (7) TMI 828 - AT - Service TaxLevy of Service Tax - liability to discharge service tax on the entire amount collected from the customers - appellant submitted that though they are liable to pay service tax on the entire amount collected from the customer, the same would be applicable only w.e.f. 01.03.2011 as the said Explanation was added to the Rules only on such date - HELD THAT:- It can be seen that the Explanation in Rule 5, clause (1) of Service Tax (Determination of Value) Rules, 2006 (inserted by N/N. 2/2011-S.T., dated 1-3-2011) has been added only w.e.f. 01.03.2011 which indicates that the service tax has to be paid on the gross amount collected from the person (PCO user) and to whom the telecom services are provided. In the appellant’s own case BHARAT SANCHAR NIGAM LTD. VERSUS CCE MADURAI AND VICE-VERSA [2018 (3) TMI 1007 - CESTAT CHENNAI], the very same issue was considered and the Tribunal held that Explanation would take effect only from 01.03.2011 and the demand for the period prior to 01.03.2011 cannot sustain. Applying the ratio of decision in appellant’s own case, it is opined that the demand cannot sustain and requires to be set aside - appeal allowed.
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