TMI Blog2015 (9) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... 104c), the principle of noscitura-sociis would be applicable and accordingly the expression “Support Service of Business or Commerce” as defined under Section 65(104c) would cover only the service which are of supporting nature to the main business like services relating to Custom relationship, evaluation of prospective customers, tele-marketing distribution and logistics, transaction, processing, office infrastructure, etc., and would not cover the servicer of renting of machinery and equipment for production or manufacture which is an activity relating to conduct of the main business. Prima facie view that the hiring of transponder capacity by the appellant in the satellite of M/s. B.T. Singapore Pte. Ltd. for the purpose of their busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransponders from them mounted on their satellite. A part of the transponders capacity was hired form M/s. B.T. Singapore Pte. Ltd. has been allowed by the appellant to be utilized by M/s. Asia Today Ltd., Mauritius, against their agreement with M/s. Asia Today Ltd., Mauritius. The appellant also entered into another contract with M/s. Asia Today Ltd., Mauritius for up linking the contents of their T.V. programmes to the transponders which have been allowed by the appellant to be utilized by M/s. Asia Today Ltd. - Appellant. The dispute in this case is about hiring of transponders by the appellant from M/s. B.T. Singapore Pte. Ltd. for which the payment is made by them in foreign currency. According to the Department the service provided by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able service would be liable to pay Service Tax on the same. The demand of Service Tax was confirmed by invoking extended period under proviso to Section 73(1) of Finance Act, 1994. 1.5 Against this order of the Commissioner, this appeal has been filed along with stay application. The miscellaneous application has been filed for interim stay on recovery till the disposal of stay application. Since the stay application itself has been taken up for disposal, the miscellaneous application is dismissed as infructuous. 2. Heard both the sides in respect of the stay application. 3. Sh. A.R. Madhav Rao and Ms. Kranti Somani, Advocates the learned Counsels for the appellant, pleaded that as clarified by the C.B.E. C. in its of Circular N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure, i.e., business centre service that in this regard he relies upon the Judgment of Tribunal in the case of Air Liquide North India (P) Ltd. v. CCE, Jaipur, reported in 2012 (27) S.T.R. 295 (Tri.-Del.) wherein applying principle of noscitura-sociis and also the Apex Court s judgment in the case of Godfrey Philips India Ltd. v. State of U.P., reported in AIR 2005 SC 1103, the Tribunal held that the activity of supply and installation of storage, tanks, etc., to client s premises on rental basis would not be covered by the definition of Support Services of Business or Commerce under Section 65(104c) as this expression covers only the services which are of supporting nature to the main business including office infrastructure service, as I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(105)(zzzq) read with Section 65(104c) of the Finance Act, 1994, that hiring of the transponder capacity by the Appellant from M/s. B.T. Singapore is an important service input for the Appellant s business and therefore, the same has to be treated as a Support Service for their business of up linking, that the principle of noscitura-sociis has been wrongly applied for ascertaining the scope of the support service of business or commerce as defined under Section 65(104c) of the Finance Act, 1994, that the ratio of the Apex Court judgment in the case of Godfrey Philip India v. State of UP (supra) relied upon in the Tribunal s judgment in the case of Air Liquide North India P. Ltd. (supra) is not applicable to the facts of this case, that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant under reverse charge mechanism on the amount paid by them to M/s. B.T. Singapore Pte. Ltd. for these services. According to the Department this activity is covered by the definition of Infrastructural Support Service as given in Explanation to Section 65(105c). However, the Tribunal in the case of Air Liquid North India Pvt. Ltd. (supra), relying upon the Apex Court s judgment in the case of Godfrey Philip India v. State of UP. (supra) held that while interpreting the scope of the expression Support Service of Business Commerce under Section 65(105c) and also of the term Infrastructural Support Service in Explanation to Section 65(104c), the principle of noscitura-sociis would be applicable and accordingly the expression ..... X X X X Extracts X X X X X X X X Extracts X X X X
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