Customs, Excise and Gold Tribunal - Ahmedabad
Idea Cellular Ltd. vs Cce on 20 March, 2007
Equivalent citations: [2007]10STJ120(CESTAT-AHMEDABAD), 2007[7]S.T.R.539, [2007]8STT498
ORDER M. Veeraiyan, Member (T)
1. Heard both sides on stay petition.
2. The applicant renders services to the subscriber of foreign mobile operators in terms of agreement with the foreign Mobile operator, and receive payment from them in foreign exchange. They were availing benefit of Notification No. 6/99 dated 9.4.99 which is reproduced below:
The Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in Sub-section 65 of the said Act, provided to any person in respect of which payment is received in India in convertible foreign exchange, from the whole of the service tax leviable thereon under Section 66 of the said Act:
Provided that nothing contained in this notification shall apply when the payment received in India in convertible foreign exchange for taxable services rendered is repatriated from or sent outside India.
3. The above notification was rescinded by notification No. 2/2003 dated 1.3.2003 and again it was restored by notification No. 21/03 dated 20.11.2003. The applicant claims the benefit of exemption during the intervening period which, prima facie, is not available. Learned Advocate also submits that the extended time limit cannot be invoked in their case and the reasons adduced by him are prima facie not acceptable. He also relies on the Circular of CBEC No. 90/1/2007 Service Tax dated 3.1.2007 wherein it is indicated that the issue regarding taxability on international in-bound roamer services for the period prior to 15.1.2007 is under examination by them. This circular does not grant any benefit as of now and, therefore, order of the Commissioner (Appeals) is, prima facie, justified. Therefore, we do not feel that this is a fit case for full waiver of dues as per Order-in-Original. Therefore, we direct the applicant to deposit a sum of Rs. 10 lakhs within 8 weeks from today, failing which appeal will stand dismissed. On the amount being deposited, there shall be waiver of the balance amount of duty demand and penalty imposed. Appeal to be listed for reporting compliance on 22nd May, 2007. Application is disposed off accordingly.
(Dictated & pronounced in open court.)