BHARTI INFOTEL LIMITED Vs. C.C.E.

JUDGEMENT

(1.) Telegraphic service is one of the services which is liable to service tax. 'Taxable service' in regard to telegraphic service has been defined under at serial No. 41 (b) of Finance Act, 1994 as service provided:

(2.) The dispute in the present case is about valuation of taxable service in the case of PCOs of the appellant M/s Bharti Infotel Ltd. The impugned order has held to the effect that the value of the service would be the price charged by the PCO operator from the PCO user (customer). As against the same, the contention of the appellant is that the value of the service is the amount paid by the PCO operator to the appellant.

(3.) We have perused the record and heard both sides. The contention of the learned Counsel for the appellant is that it is clear from the definitions of telegraphic service, and value of service that valuation should be on the basis of value of service provided to the subscriber and not to the customer.