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2016 (4) TMI 152 - CESTAT MUMBAIExport of service - produced and distribution of television programmes Consideration received for taxable export service between April 2006 and March 2008 from M/s. SGL Entertainment Ltd., Hongkong - Export of Service Rules, 2005 - Contract between the two dating back to April 2006 for further distribution - Held that:- the reviewing authorities had, inappropriately, placed emphasis on the usage by the recipients of the programmes produced by the appellants. We find that the activity that is liable to tax must be one which is specifically listed in section 65 (105) of Finance Act, 1994 and which, with reference to the business of the appellant is described in sub-clause (zzu). The appellant is a 'programme producer' within the meaning of section 65(86b) and contracted with the overseas entity in that capacity. 'Programme' had been defined in section 65 (86a) in the context of the taxable but the service rendered by a programme producer in relation a programme. There can be no doubt that, if the programme producer or any other person were to further disseminate the programme to others, such dissemination would be liable for tax as a separate and distinct service. Consequently, the usage of the programme after delivery to the overseas entity is irrelevant in deciding upon the tax liability as 'programme producer'. By following the settled law, the contention of Revenue that the distinction should remain blurred is rejected. Therefore, the services rendered by the respondent is delivered or provided from India to the overseas entity. Receipt in Indian currency is Receipt of consideration in convertible foreign currency or not - contract designates the consideration in Indian rupees - Held that:- HSBC, their bankers, indicating that inward remittance from the overseas entity was in convertible foreign currency. - Consequently, there is no justification for entertaining any doubt that inward remittances were in convertible foreign currency. Therefore, both the conditions for export in Rule 3(2) of Export of service Rules,2005 have been complied with. - Decided against the revenue
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