2020 (2) TMI 187

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..... ing Modem on rental basis. The transaction of providing Modem on rent basis is an independent transaction. In such transaction, they are paying VAT and therefore, the transaction of Modem is a deemed sale in terms of Article 366(29)A of the Constitution, which is exclusive from service. Since the nature of transaction is not under dispute that the same is deemed sale, no service tax can be demande .....

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..... , the demand of service tax was confirmed under the head Online Information and Data Base Access service in respect of transaction of Modem. The demand was upheld by the Commissioner (Appeals) therefore, the present appeal. 2. Shri S. Suryanarayanan, Learned Counsel appearing on behalf of the appellant submits that as regard internet service provided to the subscribers they are paying service t .....

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..... d both sides and considered the submissions made. We find from the record that it is not under dispute that the appellant, on one hand paying the service tax on the Internet Service provided to the customers and, on the other hand they are giving Modem on rental basis. The transaction of providing Modem on rent basis is an independent transaction. In such transaction, they are paying VAT and there .....

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