TMI Blog2019 (9) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... t s website under sale of space or time for advertisement service, SSTA - HELD THAT:- The service received from the stringers is not categorized in any of the activities mentioned in the inclusion part of the definition of BSS under section 65 (104c) of the Act. Service tax, therefore, could not have been levied under BSS. The finding recorded in the impugned order that every service related to business or commerce is classifiable as BSS is not correct. Thus, the demand of service tax under the category of BSS cannot be sustained. Amount received from the client for displaying their advertisement on the website of the Appellant under the category SSTA - HELD THAT:- This is an issue which needs to be examined afresh by the Commissioner on the basis of the documents on record and after providing an opportunity of hearing to the Appellant. Appeal allowed in part and part matter on remand. - SERVICE TAX APPEAL NO. 56894 of 2013 - FINAL ORDER NO.: 50857/2020 - Dated:- 21-9-2019 - HON BLE MR.JUSTICE DILIP GUPTA, PRESIDENT AND HON BLE MR. C.L. MAHAR, MEMBER (TECHNICAL) Ms. Shagun Arora, Advocate for the Appellant Mr. Arun Thaplial, Authorised Representative for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gency under section 10(22B) of the Income Tax Act, 1961. It has applied its income/ accumulates solely for collection and distribution of news and does not distribute its income in any manner. 5. Ms. Shagun Arora, learned counsel for the Appellant has made the following submissions: (i) The Ad-hoc exemption order and the exemption notification apply even for the services received by the Appellant, as section 66A of the Finance Act 1994, the Finance Act, deems the Appellant to be the service provider in such circumstances. In support of this contention reliance has been placed on the decision of the Tribunal in United News of India vs. Commissioner of Service Tax, New Delhi, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 65 is,- (a) provided or to be provided by a person who has established a business or has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India, and (b) received by a person (hereinafter referred to as the recipient) who has his place of business, fixed establishment, permanent address or usual place of residence, in India, such service shall, for the purposes of this section, be the taxable service, and such taxable service shall be treated as if the recipient had himself provided the service in India, and accordingly all the provisions of this Chapter shall apply: Provided that xxxx xxxx Provided further that xxxx xxxx 11. The Appellant is located in India and is receiving services from Reuters UK and EPA Germany located outside India. Hence, in terms of section 66A of the Act, such service received by the Appellant is deemed as a taxable service and the Appellant is deemed to be a service provider in respect of the said service. Section 66A further provides that all the provisions of Chapter V of the Finance Act shall apply, as if the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of Chapter V shall have full force for charge and collection of service tax. The exemption now claimed is part and parcel of the provisions of service tax as the Notification has been issued under the powers vested under section 93 of the said Act. Section 68(2) specifies the 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 second issue that arises for consideration is whether the services provided by stringers qualify as BSS. Section 65 (104c) of the Finance Act is reproduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erce is classifiable as BSS is not correct. Thus, the demand of service tax under the category of BSS cannot be sustained. 18. The third issue is regarding the demand of service tax on the amount received from the client for displaying their advertisement on the website of the Appellant under the category SSTA. The contention of the Appellant is that the Department has not considered the amount of ₹ 2,61,611/- paid by the Appellant for the financial year 2009-10 towards the service tax, while confirming the demand of ₹ 2,78,658/-. The Appellant has placed the concerned challans from pages 208 to 222 in the appeal memo. 19. This is an issue which needs to be examined afresh by the Commissioner on the basis of the documents on record and after providing an opportunity of hearing to the Appellant. 20. Thus, for all the reasons stated above the confirmation of demand on the amount paid to Reuters UK and EPA Germany under the reverse charge as also the confirmation of demand on the amount paid to stringers cannot be sustained and is set aside. However, in regard to the service tax demand on the amount received from the clients for displaying their advertisement on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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