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2018 (11) TMI 1222 - CESTAT CHENNAIValidity of SCN - grounds raised in SCN not clear - Liability of service tax - Appellants were receiving and providing IUC services from Sri Lanka Telecom, a service provider situated outside India - reverse charge mechanism - Held that:- The show cause notice has not specified the category of service falling under any of the sub-clause to Section 105 of the Finance Act, 1994 under which the demand of service tax has been proposed. It is well settled that lack of such clarity in the show cause notice and omission to indicate the specific category of service under which the tax is proposed to be demanded will vitiate the proceedings ab initio. The circulars dated 15.7.2011 and 19.12.2011 are very much applicable pari materia to IUC charges paid by the appellant to Sri Lanka Telecom, where it has been reiterated that when the service provider is located abroad, he is not covered under the definition under Section 65(105). Hence, the service provided by foreign vendors cannot be taxed under Telecommunication Service. Appeal allowed - decided in favor of appellant.
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