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TMI Blog2014 (6) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1994. The applicant used to charge their customers (end-users) for the service to be provided by way of pre-paid re-charge voucher of different denomination which was available in the open market through their distributors and retailers. The applicant were charging their customers for the service to be provided by them as per the value of the voucher purchased by the customers. Applicant, however, at the time of payment of service tax were deducting the discount offered to their distributors from the value of the voucher to arrive at the assessable value. As per the provisions of section 67, if the provision of service is for a consideration in money, then the taxable value is the gross amount charged by the service provider for such se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt towards the sale of the RCVs. They and their distributors are acting on a principal to principal basis. The sale of RCVs by the distributors to the end user/ customers is at the sole discretion of the distributor and is no way controlled by the Appellant. 3.3 The contention is that as per Section 67 of the Act, the value of any taxable service ought to be the gross amount charged by the service provider for such service provided or to be provided by him. Therefore, Service tax is payable on the amount charged or consideration received by the Appellant, from the distributor, form providing the Telecommunication Services. In support of their contention they have placed reliance in the case of Commissioner of Service Tax, Mumbai Vs. Relian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noticee could not establish in a single instance that they sold the RCVs to the end user at a price lower than the MRP. 4.2 The contention is that a plain reading of Section 67 of Finance Act, 1994 gives the findings that taxable value can be monetary or non-monetary. If the provision of service is for a consideration in money, then the taxable value is the gross amount charged by the service provider for such service provided or to be provided by him. Again the gross amount charged is defined as an amount charged for the taxable service which shall include any amount received towards the taxable service before, during or after provision of such service. On the other hand Rule 5 (1) of Service Tax Determination of Value Rules states that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wordings and expression by the Finance Act, 2006 w.e.f. 18.04.2006;and simultaneously a new Rule has been introduced in the name of ServiceTax (Determination of Value) Rules, 2006 vide Notification No.12/2006-ST dated 19.04.2006, to construe and explain the proceedings taken under section 67 of the said Act. The judgments as referred by the noticee to support their argument are being considered as cases belonged to the periods before the introduction of changes in the statues, hence the said referred judgments stand irrelevant in the present case. Ld. A.R. also placed reliance on the decision of Hon'ble High Court of Kerala in the case of Vodafone Esser Cellular Limited Vs. The Assistant Commissioner of Income Tax- [(2010)7 (Ker HCDB)] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich it was clarified that service specified in sub-section (zzzx) of clause 65 of section 105 of the Finance Act, 1994, the value of the taxable service shall be the gross amount paid by the person to whom telecom service is provided by the telegraphic authority" which goes to show that the intention of Registration has always been to levy the tax on the value received from the person to whom the telecom service is provided by the telecom authority. In this case the service is provided to the consumer and not to the distributor. Hon'ble High Court of Kerala in the case of Vodafone Esser Cellular Limited has held that "So much so, there is no scale of any goods involved as claimed by the assessee and the entire charges collected by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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