TMI Blog2015 (10) TMI 2363X X X X Extracts X X X X X X X X Extracts X X X X ..... rification – Decided against the Revenue. - APPEAL NO: ST/88280/2014 - - - Dated:- 19-8-2014 - Shri M V Ravindran, Member (Judicial) And Shri C J Mathew, Member (Technical) For the Petitioner : Shri Harish Bindumadhavan, Advocate For the Respondent : Shri A.K. Goswami, Addl. Commissioner (AR) ORDER Per: M V Ravindran: This appeal is directed against Order-in-Original No: 27/ST-II/RS/2014 dated 26/03/2014 passed by the Commissioner of Service Tax - II, Mumbai 2. Relevant facts of the case are that, on perusal of the financial records of the appellant, the lower authorities, felt that the appellant had not discharged the service tax liability for the period April 2004 to April 2006 though registered under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h 4 and 6 of the said circular. He would submit that the Board itself had clarified that such tax liability on the interconnectivity services would not arise. He would submit that subsequently from 01/07/2012 internet telecommunication services were brought into service tax net and for the first time internet access services were specifically mentioned in the services which need to be taxed. It is his submission that in view of the above, service tax liability which is sought to be confirmed for the period in question is incorrect and liable to be set aside. He would rely upon the judgment of the Hon ble High Court of Bombay in the case of Indian National Shipowners Association 2008-TIOL-633-HC-MUM-ST for the proposition that if a new serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the submissions made at length by both the sides and perused the records. The facts in this case, during the relevant period i.e. April 2004 to April 2006, appellant was registered as internet services provider under the category of Online Information Access and/or Database Retrieval Service . It is also undisputed that whenever the appellant provides services directly to the customers, service tax liability on the charges recovered from such customers are discharged. The issue involved in this case whether the amounts recovered by the appellant from small time internet service provides who took connection from the appellant for rendering services to their clients would be liable to service tax. 6. At the outset, we find that the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... panies are, Indiainformer.com, CIIonline.com, who charge the customer for certain specific information contained in their website either in advance or credit basis. They shall be also liable to pay service tax on the paid services provided by them. It is obvious that where the information is supplied free of charge, no service tax is payable. 6. Point for clarification: A question has been raised as to whether e-commerce transactions (other than providing online information and data) are covered in the ambit of service tax. It is clarified that in e-commerce transactions, no service of online information and database access/retrieval is involved. Therefore, e-commerce transactions will not ordinarily be covered under the service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n charges realised from the cyber cafi. 7. It can be seen from the above reproduced clarification issued by the Board, the Board did not want to tax the amounts recovered by an ISP for interconnectivity services. Such a stated stand cannot be overlooked by the adjudicating authority who is functioning under the Board. Be that as it may, there is nothing on record to show that small time ISPs who had rendered the services to their clients by taking connection from the appellant had not discharged any service tax liability on the amounts collected by them from their clients/customers. It is settled law that the revenue cannot argue against their own Board s clarification. 8. In view of the facts and circumstances of this case, we find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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