Case Law Details
Vodafone Essar East Limited Vs Commissioner of Service Tax (CESTAT Kolkata)
CESTAT Kolkata held that the charges paid for services rendered by the FTOs (i.e. Foreign Telecommunication Operators) cannot be taxed under head ‘telecommunication services’. Accordingly, demand set aside.
Facts- The Appellant, M/s. Vodafone Essar East Limited, are engaged in providing a comprehensive range of ‘Telecommunication Services’ in India. An investigation was initiated by the DGCEI, Kolkata Zonal Unit against the Appellant.
On the basis of the investigation, a Show cause Notice was issued to the Appellant demanding service tax of Rs. 2,87,23,940/- along with interest and penalty. The Notice was adjudicated by Commissioner vide Order-in-Original, wherein he confirmed the demand of Rs.2,04,56,485/- along with interest and dropped the remaining demands made in the Notice. He also imposed penalty equal to the duty confirmed u/s. 78 of the Finance Act, 1994.
Being aggrieved, both revenue and appellant has preferred the present appeal.
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