TMI Blog2023 (2) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... t proviso to section 4(1) of the Indian Telegraph Act, 1885. Therefore, even though the service is a telecom service but not as per the statutory definition of the telecom service hence the same is not taxable. From the circular under F.No. 137/21/2011 -ST dated 15.07.2011, it is clear that the appellant being not holding Licence under Telegraph Act, 1885 is not liable to pay service tax. The judgments cited by the learned Chartered Accountant also directly on the issue and support the case of the appellant - reliance placed in the case of IDEA CELLULAR LTD. VERSUS COMMISSIONER OF SERVICE TAX MUMBAI IV [ 2021 (9) TMI 452 - CESTAT MUMBAI] where it was held that The appellant, as a licencee of the domestic telecommunication regulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to section 73 (1) of FA, 1994 along with interest under section 75 of the Finance Act, 1994. The show cause notice also proposed penalty to be imposed under section 76, 77 78 of the Finance Act, 1994. The Adjudicating Authority dropped the proceeding of the show cause notice on the ground that telecommunication service is taxable only if it is provided to any person who has been granted a Licence under first proviso to section 4(1) of the Indian Telegraph Act, 1885. Being aggrieved by the Order-In-Original the revenue filed appeal before the Commissioner (Appeal) who allowed the appeal filed by the Revenue. Therefore, the present appeal filed by the appellant. 2. Shri Vipul Khandhar, Learned Chartered Accountant appearing on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been granted a Licence under first proviso to section 4(1) of the Indian Telegraph Act, 1885. In the present case admittedly the appellant do not possess the Licence under first proviso to section 4(1) of the Indian Telegraph Act, 1885. Therefore, even though the service is a telecom service but not as per the statutory definition of the telecom service hence the same is not taxable. This has been clarified by the board under F.No. 137/21/2011 -ST dated 15.07.2011 which is reproduced below:- International Private Leased Circuit (IPCL) - Taxability Instruction F.No. 137/21/2011-S.T., dated 15-7-2011 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfilment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assistance for marketing, formulation of customer service and pricing policies, infrastructural support services and other transaction processing. Explanation. - For the purposes of this clause, the expression infrastructural support services includes providing office along with office utilities, lounge, reception with competent personnel to handle messages, secretarial services, internet and telecom fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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