TMI Blog2016 (1) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 Boards clarification. - Demand set aside - Decided in favor of assessee. - Appeal No. ST/88280/2014 - Final Order No. A/2795/2015-WZB/STB - Dated:- 19-8-2015 - M. V. Ravindran, Member (J) And C J Mathew, Member (T) For the Appellant : Shri Harish Bindumadhavan, Adv 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice came into service tax net w.e.f. 16/07/2001. The CBEC vide circular No. B-11/1/2001-TRU dated 09/07/2001 clarified the scope of taxability under Online Information Access and/or Database Retrieval Service. He would draw our attention to paragraph 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 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conveniently ignored the basic character of a transaction i.e. interconnectivity charges between two ISPs are also rendering of services under the category of Online Information Access and/or Database Retrieval Service. 5. We have considered 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ither be accessed nor retrieved. They are, therefore, liable to pay service tax on the amount charged from the customers whether on usage time basis or on lease line basis. 5. As regards paid web-sites, a few examples of Indian dot companies 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 cove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d internet connection. It is the ISP or web-sites who provide on-line access or retrieval of information, Therefore, cyber cafes are not liable to pay service tax. Services provided by ISP to cyber cafe are taxable and the ISP will pay the tax on charges realised from the cyber cafe. 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 discharge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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