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2015 (1) TMI 226 - CESTAT BANGALOREIn-roaming services - taxability when services are provided from one circle to another circle - Penalty u/s 78 - Held that:- What the appellants are doing is only book adjustments between the circles and this is being done because each circle is identified as a profit centre. For the purpose of accounting and for the purpose of identifying the source of income in each circle, the said charges are adjusted between the centres and in reality, according to the appellants there is no service provided and services received in this case. All the circles belong to the same company and therefore when one circle provides in-roaming service to another circle, there is no service element involved. Further, as far as the subscriber is concerned, the circle in which he has been a subscriber which is considered as the home circle charges for the services rendered to him for roaming as well as for usage within the circle. Further it was also submitted that according to the Circular issued by the Board (No. 22/2/97, dated 3-9-1997), in such situations, the service provider can collect the amount from subscriber at one point and pay the Service Tax. - IT cannot be said that there are service provider and service receiver in this case. In this view of the matter, we consider that the appellants have made out a strong prima facie case in their favour for complete waiver. - Stay granted.
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