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2024 (1) TMI 183 - AT - Service TaxClassification of service - Online Database Access and Retrievable (OIDAR) Services or not - place of provision of service - period from July 2012 to November 2016 - time limitation - suppression of facts - HELD THAT:- Appellant has not maintained any website or electronic network to provide services which are essentially automated or involving minimal human intervention for public in exchange for any consideration. The Appellant is providing digitized, abstracted and indexed data out of raw data received from third parties using the internet or electronic means of communication just to communicate resultant digitized or converted data, which are input services for their customers who may utilize the data for providing services under the category of OIDAR service (main service) by putting them on the internet for public/clients or for their personal use. The services rendered by appellant are therefore broadly covered under the category of Business support services or telecommunication services using tools of information technology, and shall not be covered under the category of OIDAR services. The instant case is wholly covered by the decision of this Tribunal in the case of State Bank of India Vs. Commissioner of Service Tax, Mumbai-II [2014 (11) TMI 310 - CESTAT MUMBAI] wherein SBI had entered into a contract for providing Virtual Private Network (VPN) which enabled SBI and its branches to retrieve data from the data centre maintained by the applicants in different countries abroad and demand was made under OIDAR service - the Appellant is not liable to service tax on the services under the category of OIDAR services. Time Limitation - suppression of facts or not - HELD THAT:- The Appellant was under a bona fide belief that its activity was not liable to service tax and further, the Appellant has maintained proper records of its activity and has been making compliances with various laws including Income Tax Act, Companies Act, and had been filing ST-3 returns under service tax, filing refund claims on quarterly basis in respect of service tax paid on input services used in the services exported out of India - the issue in dispute involves interpretation of statute, and as such no mala fide can be attributed to the Appellant. Accordingly, it is held that extended period of limitation cannot be invoked in the facts of the present case. The impugned order cannot be sustained and is accordingly, set aside - Appeal allowed.
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