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TMI Blog2019 (9) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... o show cause notices are as follows: S.No. Description Show cause notice dated 21.04.2010 & period Show cause notice dated 20.10.2010 & period 1. Service Tax demand on amount paid to M/s. Reuters Ltd., UK and EPA, Germany under reverse charge under Online Information or database access or retrieval services, OIDAR 46,18,370/ (18.04.2006 to 31.03.2009) 6,16,947/- (FY 2009-10) 2. Service Tax demand on amount received from clients for displaying their advertisement on Appellant's website under sale of space or time for advertisement service, SSTA 10,36,005/- (May, 2006 to Nov, 2007) 2,78,658/- (FY 2009-10) 3. Service Tax demand on amount paid to stringers located outside India under reverse charge under suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i, 2017 (51) STR 23(Tri.- Del.) and C.C.E & S.T. Indore vs. M/s. Cummins Technologies India Ltd., 2017 (9) TMI 224 - CESTAT New Delhi; (ii) The impugned order has confirmed the demand on amount paid to stringers in foreign currency for receipt of news items, under the reverse charge under the category of BSS, holding that said service is covered under the means clause of the definition of BSS "in relation to business or commerce" under section 65(104c) of the Finance Act. When the service received from the stringers is not categorized in any of the activities itemized in the inclusion part of the definition of BSS under Section 65(104c) of the Act, the question of levying tax thereon under BSS does not arise. Hence, the demand confirmed un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant is a service recipient and section 66A of the Finance Act is applicable to a service recipient. 9. Section 66 of the Finance Act provides that there shall be levied service tax at the rate of 12% of the value of taxable services referred to in various sub-clauses (mentioned in section 66) of section 65 and collected in such manner as may be prescribed. 10. Section 66A of the Finance Act deals with charge of service tax on services received from outside India. The relevant portion of sub-clause (1) of section 66A of the Finance Act is reproduced below: "Section 66A. (1)Where any service specified in clause (105) of section 65 is,- (a) provided or to be provided by a person who has established a business or has a fixed establishm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice recipient. It needs to be noted that under the deeming fiction created under section 66A of the Finance Act, the service recipient, being the person liable to pay tax under reverse charge, is deemed to be a service provider and, accordingly, the provisions of Chapter V of the Finance Act apply. In such a case, the Ad-hoc Exemption Order and the Notification will be applicable to the Appellant, even if the demand is in respect of imported services, as the Appellant is deemed to be a service provider under section 66A of the Finance Act. 12. This precise issue came up for consideration in the case of the Appellant for the subsequent period i.e. 2010-12 in United News of India. The Tribunal held that in view of the provisions of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e person to pay service tax as per the rate prescribed under section 66. We note that section 66A is applicable to all services which are specified under clause (105) of section 65. However, no rates are specified considering the legal position as stipulated clearly in section 66A, we find that the legal fiction cannot be restricted only to collection of tax without applying any concession of the notification applicable thereto when the conditions of the said Notifications are fulfilled by the recipient of such service. Accordingly, the finding in the impugned order on this issue is not sustainable. The appeal is allowed on this issue." 13. This decision subsequently followed by the Tribunal in M/s. Cummins Technologies India Ltd. 14. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finition of BSS 'in relation to business or commerce' under section 65 (104c) of the Act. 16. Learned Counsel for the Appellant has submitted that the means clause of the definition of BSS takes colour from the inclusion clause of the definition. Thus, according to the learned counsel, the inclusion clause of the definition of BSS clarifies the scope of the clause in the definition. The submission advanced is that when the service received from the stringers is not categorized in any of the activities itemized in the inclusion part of the definition of BSS, the question of levying tax thereon under BSS does not arise. 17. There is force in the submission advanced by the learned counsel of the Appellant. The service received from the strin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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