Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 66 - AT - Service TaxBroadcasting services - activity of selling time slots for advertisements by SIPL on behalf of Star Hong Kong - Star Hon Kong had appointed SIPL as their representative in India to solicit advertisements for the channels telecast by the former and also to collect and remit the advertisement charges - Held that:- SIPL is the independent representative of Star Hong Kong and is engaged in selling time slots for broadcasting or obtaining sponsorships or collecting broadcasting charges on behalf of the latter. It is also not in dispute that whenever advertisement charges are collected in Indian Rupees on behalf of Star Hong Kong, SIPL is discharging service tax liability. Therefore, it does not stand to reason that the service rendered to a person who directly makes payment to Star Hong Kong for broadcasting in India cannot be classified under ‘broadcasting services'. Since SIPL is essentially engaged in selling time slots for broadcasting on behalf of Star Hong Kong in both the situations, service tax would be leviable. It is abundantly clear that so long as the radio or television programme is received in India and intended for listening or viewing by the public in India, such activity shall be taxable service even if the physical activity of broadcasting such as encryption of signals or beaming thereof takes place outside India and any branch office, subsidiary, representative, agent or any person who is appointed by the broadcaster for selling of time slots for broadcasting of any programme or obtaining sponsorships for programme or collecting broadcasting charges on behalf of the broadcaster will be liable to pay service tax. Representative of the Foreign Broadcaster (who undertakes broadcasting in India) engaged in selling time slots or obtaining sponsorships or collecting and remitting charges, on behalf of the broadcaster has to be made liable to service tax in India, which is the express intention of the Legislature while making retrospective amendments to sections 65 (15), 65 (16) and 65 (105) (zk) of the Finance Act, 1994. Therefore, this will of the legislature has to prevail and has to be given effect to. Viewed from this perspective, the argument that such a transaction is not taxable in India has to be rejected in toto and we do so. The responsibility also included delivery of the invoices to the advertisers on a timely basis. Thus the appellant obviously knew the amount charged for the broadcasting services. Section 70 of the Finance Act, 1994, mandated that - “Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.” Thus the appellant was operating under self-assessment procedure during the impugned period. The appellant has failed to declare in the said return the complete particulars with regard to the services rendered to the foreign advertisers. Therefore, the ratio of the decision of the hon'ble apex court in the case of Madras Petrochem Ltd. (1999 (3) TMI 81 - SUPREME COURT OF INDIA) relied upon by Revenue would squarely apply. Representative of the Foreign Broadcaster (who undertakes broadcasting in India) engaged in selling time slots or obtaining sponsorships or collecting and remitting charges, on behalf of the broadcaster has to be made liable to service tax in India, which is the express intention of the Legislature while making retrospective amendments to sections 65 (15), 65 (16) and 65 (105) (zk) of the Finance Act, 1994. Therefore, this will of the legislature has to prevail and has to be given effect to. Viewed from this perspective, the argument that such a transaction is not taxable in India has to be rejected in toto and we do so. The responsibility also included delivery of the invoices to the advertisers on a timely basis. Thus the appellant obviously knew the amount charged for the broadcasting services. Section 70 of the Finance Act, 1994, mandated that - “Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.” Thus the appellant was operating under self-assessment procedure during the impugned period. The appellant has failed to declare in the said return the complete particulars with regard to the services rendered to the foreign advertisers. Therefore, the ratio of the decision of the hon'ble apex court in the case of Madras Petrochem Ltd. (supra) relied upon by Revenue would squarely apply. invocation of extended period of time for confirmation of demand is fully justified - Decided against assessee.
|