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Commissioner of Service Tax, Mumbai Versus Click For Steel Services Ltd.

Classification of services - Business Auxiliary Service - whether classified under e-commerce service or Online information and database access or retrieval services? - Held that: - the respondent is running website through which the interested steel manufacturer/trader are making trade. The respondent is buying and selling the steel product of various steel manufacturer/trader. We do not find that the buyer of the goods is accessing any information online or data online on the respondent’s site .....

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. Commissioner (Appeals). - The Ld. Commissioner has relied upon the Board Circular dt. 9.7.2001 and also examined the web sites and came to conclusion that the activity of the respondent is nothing but e-commerce trading activity they are not providing on line database and access or retrieval services - appeal dismissed - decided against Revenue. - ST/87815/13 - A/89096/17/STB - Dated:- 16-8-2017 - Shri Ramesh Nair, Member (Judicial) and Shri Raju, Member (Technical) Shri D.V. Nagvenkar, Ad .....

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cause notice dt. 24.4.2007 was issued to the appellants alleging evasion of service tax amounting to ₹ 34,45,770/- for rendering online information and database access or retrieval services, as per agreement dt.12.10.2000 during the period October 2001 to March 2006 (Service Tax ₹ 14,31,312/-) and for rendering Business Auxiliary Service as per agreement dt. 16.10.2003 during the period from 14.5.2003 to 31.3.2005 (Service Tax ₹ 20,14,458/-). The adjudicating authority has pass .....

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see under e-commerce. He submits that as per Board Circular No. B11/1/01-TRU dt. 09.07.2001, it covers only those e-commerce transactions where no charge is paid by the surfers for information on sale of goods and services offered. In the present case, the respondent are charging fees from those who wish to access such Online Information and Database. Therefore the service provided to the buyers of the steel product is rightly classifiable under OLIDAR Services. He further submits that as regard .....

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submitted that the Respondent in the present matter is only engaged in providing a platform for facilitating e-commerce trading facility and not in rendering OIDAR services wherein the subscription/membership fee was being recovered only for purpose of providing access to the trading floor through a login ID/password and not for the purpose of providing access to any online information or database access or retrieval services as has been contended by the Revenue. Therefore, Circular No. B11/1/01 .....

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e for providing any service regarding retrieval of such database. It is further submitted that Revenue in its appeal has without any basis contended that the benefit of Notifications No. 13/2003-ST dat5ed 20.06.2003 was not applicable since the benefit of the said Notification was available only for the period prior to 09.07.2004 and service tax demanded for the period from 09.07.2004 onwards was sustainable. In this regard, it is respectfully submitted that for the period subsequent to March, 2 .....

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not find that the buyer of the goods is accessing any information online or data online on the respondent s site but they are only interested for sale and purchase of the steel products. The respondent with regard to such trading are getting margin from sale and purchase. Hence the service of the respondent is clearly of e-commerce in respect of steel products. Therefore it merits classification as e-commerce service and not online information or database access or retrieval services. As regard .....

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fore the appeal of the Revenue on this point is incorrect. The Ld. Commissioner (Appeals) after examining the facts and legal point given a very detail finding which is reproduced below: 7. I have carefully gone through the records of this appeal. The Appellants written submissions made in their appeal memorandum as well as oral submission made in the course of personal hearing held on 19.12.2012 and the Adjudicating Authority s findings recorded in the impugned order have been duly considered b .....

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mation and data) are covered in the ambit of service tax. It is clarified that in ecommerce transactions, no service of online information and database access/retrieval is involved. Therefore, e-commerce transactions will not ordinarily be covered under the service tax net. Normally, the web sites do not charge the surfers for information on sale of goods or services offered by them. If at all they do, service tax will be payable on the amount charged for providing the information. 9. Further, t .....

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r. It is this principle of equivalence which is in-built into the concept of service tax, which has received legal support in the form of Finance Act, 1994. To give an illustration, an Event Manager (professional) undertakes an activity, namely, of organizing shows. He belongs to the profession of Event Manager. As long as he is in the business or calling or profession of an Event Manager, he is liable to pay the tax on profession, calling or trade under Entry 60 of List II. However, that tax un .....

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ared for home consumption under the Central Excise Act, 1944. This is how the principle of equivalence equates consumption of goods with consumption of services as both satisfy the human needs. In the case of Internet Service Provider, service tax is leviable for on-line information and database provided by web sites. But no service tax is leviable on E-commerce as there is no Database Access. (emphasis supplied) . 10. In the instant case, there is nothing on record to show that the appellants h .....

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under one roof a complete range of prime steel products available both over the internet and via telephone; ex stock and door delivered to the customer. It also auctions over-rollings and secondary products through its auction platform. CFS aims to make steel buying a customer friendly activity with transparency in pricing and policies with our assurance of quality and quantity backed by reputed manufacturers with whom we have firm arrangements to retail their products. Our endeavour is to brin .....

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