TMI Blog2017 (6) TMI 1025X X X X Extracts X X X X X X X X Extracts X X X X ..... ate interconnection of various service providers. It is also to be noted that such charges have been recovered by the appellant from other basic telephone service providers and not telephone subscribers. CBEC vide their Circular dated 12.3.2007 clarifies to the effect that IUC will not be liable to pay service tax under the category of telephone services since it is not a charge recovered by the telegraph authorities for providing of telecommunication services to the subscriber. This clearly takes the IUC outside the service tax levy as far as telephone service is concerned. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No.1280 of 2010 - ST/A/53398/2017-CU[DB] - Dated:- 23-5-2017 - Mr. S K Mohanty, Member (J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. However, the appellant challenged the decision of the Tribunal before the Hon ble High Court of Rajasthan at Jaipur. The Hon ble High Court vide their decision dated 27.2.2017 directed this Tribunal to consider the matter afresh and expressed no opinion on the merits of this case. 4. Learned Counsel for the appellant, in his arguments, submitted that the amounts collected by the appellant from various basic telephone providers were in the nature of inter connection link facility charges. He further submitted that such charges, which are known as Inter Connection Usage charges (IUC) was the subject matter of debate and discussions between the Ministry of Finance and Ministry of Communication through various basic telephone providers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure, port charges, rent for space etc. It has been submitted on behalf of the appellant that such charges have been recovered to facilitate such basic telephone service provider to have interconnection with the BSNL network so that there is a bigger network for free flow of telecommunication traffic from either side. From the records of the case, we note that such interconnected facility is not provided on its own by the appellant but is a mandatory direction to all the telecommunication companies so as to facilitate interconnection of various service providers. It is also to be noted that such charges have been recovered by the appellant from other basic telephone service providers and not telephone subscribers. 7. There has been a lot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des providing office along with office utilities, lounge, reception with competent personal to handle messages, secretarial services, internet and telecom facilities, pantry and security: 9. Business Support Service includes service activities such as providing office along with office utilities such as lounge, reception etc. From the nature of IUC recovered by the appellant, we are convinced that the appellant has not provided any such services falling within the category of Business Support Services. The IUC stand recovered from other basic telephone service providers only for providing interconnection link and infrastructural support, and space for keeping equipments belonging to other service providers. Consequently, we find no re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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