TMI Blog2015 (2) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... vider has not been licensed by Indian Telegraph Authority and therefore he is not providing Telecommunication Service at all. The correct way of interpretation is to say that he is providing Telecommunication service but the Indian definition of Telecommunication service does not include services provided by services providers who are not licensed by Indian Telegraph Authority. We are unable to accept the theory that the service itself comes under a different category in such a situation. When the definition of Telecommunication service under Section 65(109a) clearly covers the activities undertaken by the appellants and clearly covered by the Telecommunication services, to take a stand that it has to be classified under Business Support Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Singtel were used in rendering the conferencing services to its customers. Taking a view that appellant should have paid service tax on such services received from InterCall Inc. and Singtel, proceedings were initiated which has culminated in confirmation of the demand for service tax of ₹ 1,21,89,379/- for the period from 1 st May 2006 to 31 st March 2011 with interest. Penalties also have been imposed against the appellant. 2. Learned counsel on behalf of the appellants submits that the audio conferencing and video conferencing etc are part of Telecommunication services as defined under Section 65 (105) (109a) of Finance Act 1994. He also relies upon the clarification issued by the Board vide F.No.137/21/2011-ST dated 19.12.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Tribunal in the case of Infosys Ltd. is also applicable to the facts of this case and for ready reference is reproduced below: 6.2. Learned counsel relied upon the Board's Circular issued in F.No. 137/21/2011-S.t. dated 19.12.2011 to submit that the Government has accepted the position that service tax is not payable by the service provider in respect of such service. He also submitted that the very same issue had come up for consideration of the Commissioner in the case of their own sister company, M/s. Infosys BPO Ltd. and the Commissioner in Order-in-Appeal No. 122/2012 dated 12.10.2012 had dropped the demand with the following observations: In view of the Board's clarification, I hold that the demand of service ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the appellant makes payment to cellular agencies for transmitting the data. Revenue has brought out the appellant to purview of tax under category of business auxiliary service on the ground that services have been provided on behalf of its client. Ld. Counsel raises an issue that appellant is entitled to input credit which is apparent from para 4.11 of the impugned order. Shri Sahu submits that telecommunication services come under Section 65(105)(109a) of Finance Act, 1994. Therefore, his prayer is when there is specific service classified under specific category, Rule of classification is to reasonably classify akin services in the respective category. There was similar matter before the Tribunal in the case of Cellebrum Technologies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing Telecommunication Service at all. The correct way of interpretation is to say that he is providing Telecommunication service but the Indian definition of Telecommunication service does not include services provided by services providers who are not licensed by Indian Telegraph Authority. We are unable to accept the theory that the service itself comes under a different category in such a situation. When the definition of Telecommunication service under Section 65(109a) clearly covers the activities undertaken by the appellants and clearly covered by the Telecommunication services, to take a stand that it has to be classified under Business Support Service which does not cover these activities is not correct. In any case a more spe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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