9911796707
TMI Blog2013 (8) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to remit the tax. Revenue considered three taxable services provided or received as the case may be by the petitioner and in respect whereof the liability to remit tax arises; identified as Online Information or Database Access or Retrieval Service (OIDARS); Business Support Service (BSS) and Sale of Space or Time for Advertisement on Internet. 2. In respect of OIDARS, the petitioner under agreements entered into with overseas news service providers such as Reuters and European Pressphoto Agency (EPA) to facilitate the access the data provided by the foreign agencies for discrimination of the date within the country was remitting payments to the overseas service providers. The petitioner contended before the adjudicating authority that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hoc exemption order dated 06-09-2010, the adjudicating authority however concluded that since in respect of the transactions in issue, the petitioner is not the service provider but a service recipient, it liable to pay the tax, under Section 66A of the Act and that the benefits of the Notification are not available. 3. The Ld. Counsel for the petitioner reiterates the same contention, which was dis-favoured by the adjudicating authority, that in view of the provisions of Section 66A of the Act, the legislative fiction enjoined is that a service recipient liable to remit the tax under reverse charge mechanism shall be considered to be the service provider and this fiction should be applied for considering grant of benefits under the ad-hoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yed reporters but to overseas freelance stringers, who were paid on an agreed basis (located outside the territory of India), in foreign currency. The contention of the petitioner (which found dis-favour by the adjudicating authority) is that services provided by such overseas located stringers fall outside the definition of Business Support Service. BSS is defined in Section 104c as service provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfilment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assista ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t remittance should be given credit for. 6. In the aforesaid circumstances and analysis, we prima facie see a good case for no liability to tax on the OIDARS component, i.e., for Rs.52,35,317/-; and an evenly balanced case in respect of Business Support Service, i.e. for Rs.11,09,275/-; and none (at this stage) for sale of space and time for advertisement service, i.e. for Rs.13,14,663/-. 7. Accordingly, we grant waiver of pre-deposit and stay all further proceedings pursuant to the adjudication order, on condition that the petitioner remits Rs.16,00,000/- within 8 weeks from today and reports compliance by 07-10-2013. In default, the appeal shall stand dismissed for failure of pre-deposit. 7. The stay application is accordingly disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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