TMI Blog2017 (9) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... and admittedly, the services now under consideration are specifically covered in the said tax entry. The Board has examined the international practice with reference to roaming services vide Circular dated 03.01.2007. It was held that services to inbound roamers is delivered and consumed in India and hence, it is not an export of service. It was further clarified that international practice treats the telephone service provided to an inbound roamer by the visited network, for purpose of taxation, in the same manner as a telephone service provided to any home subscriber. Appeal allowed - decided in favor of appellant. - ST/51934/2014-CU-[DB] - ST/A/55606/2017-CU[DB] - Dated:- 26-7-2017 - Mr. S.K. Mohanty, Member (Judicial) And Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... criber of the appellant, is rightly taxable under the category of Business Auxiliary Services in terms of Section 65 (105) (zzb) of Finance Act, 1994 read with Section 65 (19) of the Finance Act, 1994. 2. In other words, the Revenue held that the foreign telecom partner of the appellant provided telecom service on behalf of the appellant to its subscriber during the visit outside India. Such provision of service on behalf of appellant is liable to be taxed on reverse charge basis at the hands of the appellant, as a recipient of service. The Original authority confirmed the tax liability of ₹ 23,49,91,142/- for the period 2006-07 to 2011-12, covered in 3 demand notices. He held that the provision of services like tele-services, spee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the service provider being a foreign telecom service company is not covered by Indian Telegraph Act, 1895, there is no question of treating the same service under other taxable category like business support service. 4. The ld. Counsel also drew our attention to the decision of Hon ble Kerala High Court in Federal Bank Ltd. 2013 (29) S.T.R. 554 (Kerala) which was affirmed by Hon ble Supreme Court 2016 (42) S.T.R. 418 (S.C.) wherein a parallel situation of banking service was examined by the Hon ble Courts. The cash management service, which was disputed for tax liability was held to be specifically covered/ excluded under taxable category of banking and other financial services. The Revenue held a view that the said servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecom service using the connectivity provided by roaming partner of the appellant in that foreign country. There is no dispute that the services provided by the foreign telecom Co. is squarely covered by the tax entry 'telecommunication service'. However, the tax liability could not be brought in only for the reason that the said provider of service in foreign country is not a Telegraph Authority as required under Finance Act, 1994. The question now is such services, otherwise recognized as telecom service, which can be subjected to tax if provided in India by a Telegraph Authority, can be brought under tax under a different tax entry, namely, Business Auxiliary Service. We note examining an almost similar situation, the Board has ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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