VERIZON COMMUNICATION INDIA PVT. LTD. Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) These four writ petitions by Verizon Communication India Pvt. Ltd. ('Verizon India'), under Article 226 of the Constitution raise a common issue viz., whether the services provided by Verizon India under a Master Supply Agreement it has with MCI International Inc. (hereinafter referred to as 'Verizon US'), for rendering connectivity services for the purpose of data transfer, constitutes export of telecommunication services under the Finance Act , 1994 ('FA') read with the relevant rules thereunder? The background

(2.) The question arises in the following background. Verizon India is a company incorporated under the provisions of the Companies Act , 1956 and is registered with the Service Tax Department ('Department') under the category of 'Business Support Services'. Verizon India entered into a Master Supply Agreement with Verizon US for rendering connectivity services for the purpose of data transfer. Verizon US is a company located outside India, inter alia engaged in the provision of telecommunication services for which it enters into contracts with its customers located globally.

(3.) Since Verizon US does not have the capacity to provide such services in all geographical areas across the globe, it utilises the services of other Verizon entities including Verizon India to provide connectivity to its customers. It is stated that such connectivity is provided in the form of: