TMI Blog2017 (5) TMI 882X X X X Extracts X X X X X X X X Extracts X X X X ..... has not been granted with any licenses under the Indian Telegraph Act 1885 and hence cannot be considered as a Telegraph Authority under the provisions of the Indian Telegraph Act 1885. This Tribunal in the case of TCS E-Serve Ltd. [2014 (6) TMI 655 - CESTAT MUMBAI], by relying on the circular dated 15.07.2011 has held that services provided by any person who is not a Telegraph Authority, is not liable to service tax either u/s 66 or u/s 66A ibid. Demand set aside - appeal allowed - decided in favor of assessee. - ST/371/2011-CU(DB) - FINAL ORDER NO. 56465/2016-CU(DB) - Dated:- 30-11-2016 - Shri S.K. Mohanty, Member (Judicial) and Shri V. Padmanabhan, Member (Technical) Shri Manish Gaur, Advocate for the Applicants Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the appellant submits that the services provided by the Foreign Telecom service provider is not conforming to the taxable services defined under clause (zzzx) of section 65(105) of the Finance Act 1994. Thus he submits that since the service is not conforming to the taxable service falling as above, the demand of service tax under section 66A cannot be confirmed against the appellant in the capacity of recipient of such services. He further submits that since the services were not provided by the overseas service provider in the capacity of Telegraph Authority , the said service is outside the scope and ambit of telecom services as defined under clause (zzzx) of section 65(105) ibid. 5. In this context he relies on circular no. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under the Indian Telegraph Act 1885 and hence cannot be considered as a Telegraph Authority under the provisions of the Indian Telegraph Act 1885. 11. Analyzing the true scope and ambit of the definition of Telegraph Authority the CBEC vide circular dated 15.07.2011 has clarified as below: The matter has been examined. The activities are in the nature of leased circuit services presently covered under Telecommunication service. However, for getting classified under telecommunication service, section 65(105)(zzzx) of the Finance Act, 1994 provides that the service should be provided by a Telegraph authority. Telecommunication service as defined under section 65(109a) covers services which are provided by a person who has been grant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h authority has the meaning assigned to it in Clause (6) of Section 3 of the Indian Telegraph Act, 1885 and includes a person who has been granted a licence under the first proviso to sub-section (1) of Section 4 of that Act. It is not the case of the department that the foreign service provider or the appellant herein is a telegraph authority as defined in the law. If that be so, leased circuit service provided by a person who is a telegraph authority is not liable to Service Tax either under Section 66 or under Section 66A and we hold accordingly. 5.4 This legal position is evident from the clarification issued by the Board vide letter dated 15-7-2011 cited supra. The relevant portions from the said letter are extracted verbatim b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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