TMI Blog2020 (2) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of termination is not available to the appellant. The appellant collects the revenue on behalf of M/s Sify Limited from the customers and for the services rendered by the appellant, M/s Sify Limited will pay to the appellant 30% of the browsing revenue. There is nothing in the entire agreement that would suggest that a new joint venture has been formed or a joint venture between the two companies has been established as a business. Nothing in the agreement suggests that the appellant and Sify have an agreement on Principal to Principal basis - in the present case based on the nature of the agreement the appellant is providing services to M/s Sify Limited which fall under the category of business auxiliary service. Appeal dismissed - decided against appellant. - Service Tax Appeal No. 784/2010 and 992/2010 - FINAL ORDER NO. 60155-60156 /2020 - Dated:- 30-1-2020 - MR. ASHOK JINDAL, MEMBER (JUDICIAL) AND MR. P.V SUBBA RAO, MEMBER (TECHNICAL) Shri Jatinder Mohan, Consultant for the Appellant Shri M.S. Dhindsa, Authorised Representative for the Respondent ORDER Both these appeals are filed against the same impugned orders dated 26.02.2010. 2. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny employee of the Business partner. 1.4. Business Partner acknowledges that the provision of Services through Business partner is non-exclusive. Sify has unfettered rights to set up, operate, and provide services to the Subscribers directly or through other such interest parties in the vicinity of the Territory. 1.5. Sify reserves the right to facilitate ease of customer registration and renewals through setting up of facilities for customers to avail of purchase of fresh or renewal packs, either independently or through a network of partners. 1.6. Sify reserves the right to make any change, alteration, modification in the services, business exploitation model, revenue generation, models, charges, polices, specifications etc. at its sole discretion and the same shall be binding on the Business partner. 2. Price/Charges Payments 2.1 Business Partner shall, pay to Sify, a non-refundable one-time fee per project of 256 IPs of ₹ 39,284/- (Rupees Thirty Nine thousand two hundred and eighty four only) inclusive of taxes and levies as applicable on execution of this term sheet in consideration of Sify providing technical know-how, business models, revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ested for quality in terms of performance. Configuration of firewall server recommended by Sify Pentium 4: 2.4 GHZ or more 1 GB RAM 36GB Hard Disk Drive 2*NIC CARD 10/100 (Intel Pro) CD ROM Drive Key Board Floppy Disk Drive (Monitor is optional) Minimum Technical Requirement for Installation of Wireless Subscriber unit: 1. Proper electrical Earth Earth - Neutral Voltage or = 0 2 Volts AC Earth Mains Voltage 220 230 Volts AC Neutral Mains Voltage 220 230 Volts AC 2. Stable and uninterrupted power supply. 3. Proper place (data rack) to mount the junction box inside the room /enclosure 2.2 . Business Partner shall pay an interest free refundable deposit NIL at the time of signing up. 2.3. Business Partner shall purchase the Temp ID s and passwords for the internet access from Sify or its Merchant Partner. 2.4. Sify shall pay Business Partner amounts specified in Schedule II (as applicable). All payments shall be made to the Business, Partner, subject to applicable taxes and other deductions. All amounts to be paid to Business Partner towards revenue share shall be made only through bank transfer wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all not use his network to provide internet connectively of any Internet Service Provider other than Sify. 3.8 Business partner shall permit Sify to audit the accounts of the Business Partner in respect of charges collected and remitted by subscribers. 3.9 Business partner shall not charge anything from the customers other then the first time installation charges and the tariff charges. 3.10 Business Partner shall represents that he is a registered Cable TV Operator under the Cable Television Network (Regulation) Ordinance Act 1995 or a DID operator and shall operate in compliance with all applicable laws. 3.11 Business Partner shall indemnify Sify against any action, claim, loss or damage, caused to Sify as a result of any misrepresentation, negligence or breach of this Term sheet. This clause shall survive expiration or termination of this Term sheet. 3.12 No business partner shall represent or issue statements to the press or the general public regarding Sify Broadband without the express and written consent of the company in writing. 3.13 Business Partner shall ensure that every subscriber registration is done with complete and correct details such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he browsing revenue. 6. There is nothing in the entire agreement that would suggest that a new joint venture has been formed or a joint venture between the two companies has been established as a business. Nothing in the agreement suggests that the appellant and Sify have an agreement on Principal to Principal basis. The main service provider or the principal M/s Sify Limited is the one who provides internet services to the customers and the appellant provides services to M/s Sify Limited using their cable network and manpower ensuring the last mile connectivity up to the users premises. The appellant also collects bills on behalf of M/s Sify Limited. 7. In view of the above, we find that the nature of agreement in this case is that of a principal and a service provider. The case laws relied upon by the appellant Ushakiron Television- 2019 (24) GSTL 267 (Tri.-Hyd.) and Old World Hospitality Limited 2017 (3) GSTL 178 (Tri. Del.) are different in as much as based on the specific details of the agreement in those cases, it was concluded that there was no service provider - service recipient relationship in those agreements. 8. Consequently, we find that in the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X
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