TMI Blog2023 (3) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... OF SERVICE TAX, MUMBAI [ 2014 (6) TMI 655 - CESTAT MUMBAI] . In the facts of the said case TCS E-Serve was engaged in providing call centre services, collection and sales services and computerised data processing services to various customers in India and abroad, were registered with the department of service tax under the category of BAS BSS - This Tribunal held that service tax liability does not arise under Section 66A of the Finance Act, if service is not specified under Section 65(105) of the Finance Act. Applying the ratio, the Tribunal held that it is not enough that the service provider provides lease services but it should also be a Telegraph Authority as defined in the Act. Unless both the conditions are cumulative sat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Verizon Inc, as per the terms of the agreement. Verizon Inc raises invoice directly on the Appellant on a monthly basis. The said services received by the Appellant is used by them in provision of their taxable output services. 3. For the period under dispute October 2006 to July 2009, the Revenue was of the view that the services availed by the Appellant from Verizon Inc, USA merits classification under Internet Telecommunication Service and demanded service tax vide Show Cause Notice dated 28.09.2011. 4. The Appellant contended that the services availed by them from Verizon Inc are not in the nature of Internet Telecommunication service and at best will be classified as Leased Circuit Service until 31.05.2007 and from 01.06.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and space for the customer s web page, (iii) Provision of telecommunication services, including fax, telephony, audio conferencing and video conferencing, over the internet. 8. It is submitted that the services availed by the Appellant are not availed through Internet but are availed by way of obtaining a dedicated international private bandwidth connectivity. This bandwidth connectivity is exclusively for the Appellant unlike the internet services, which do not provide such exclusivity. These services are specifically covered upto 31.05.2007, under the category of Leased Circuit Services and thereafter under the category of Telecommunication services. 9. Under Section 65(109a) of Finance Act, 1994, Telecommunication service means ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re more specifically covered as a Leased Circuit (upto 31 May 2007) and thereafter as Telecommunication service. 12. However, under both the above categories, as per the statutory definition, the service provider needs to be a telegraph authority. The Telegraph authority has been defined inter alia, to include a person who is granted a license under the Indian Telegraph Act, 1885. In the present case, Verizon Inc has not been granted such license. Therefore, it would not qualify to be telegraph authority and therefore any services provided by them will not be liable to service tax. The above view is supported by the following: (a) Circular: 137/21/2011-S.T. dated 15.07.2011 (pg no. 13 of compilation) (b) Circular: 137/21/2011-S.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on) (d) ABB Ltd vs C.C.E. S.T. LTU Bangalore, 2019 (24) G.S.T.L. 55 (Tri.-Bang.) (pg no. 32 of compilation) 15. In any case, for the dispute on classification, the Appellant cannot be attributed with the charge of suppression or willful misstatement justifying invocation of extended period of limitation or levy of penalties. 16. Without prejudice to the above, the Appellant prays for invoking Section 80 of the Finance Act, 1994 for waiver of penalties. 17. For the submissions made hereinabove, the Appellant prays that their appeal be allowed with consequential relief. 18. Learned AR relies on the impugned order. 19. We find that the issue herein is squarely covered by the precedent ruling of this Tribunal, co-ordinate be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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