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2018 (9) TMI 41 - AT - Service TaxLiability of Service Tax - Programme Producer’s Service - appellant hired the services of certain nonresident service providers namely M/s IMG and M/s Hawkeye for producing the live feed of the cricket matches being played in India to be telecasted on various TV Channels, against payment of commercial consideration for the IPL 2008, IPL 2009 & IPL 2010 - services were being provided by the nonresident service provider and hence service recipient - Revenue Neutrality. Held that:- There is no dispute about the fact the services provided by the nonresident service providers namely M/s IMG and M/s Hawkeye for producing the live feed of the cricket matches being played in India for the appellants have been held to be classifiable as “Programme producer’s Service” and hence liable to service tax under the said category - the service tax in respect of this service was due from the Appellant on reverse charge basis and was to be paid by them on the due date as prescribed. Revenue Neutrality - Held that:- The case cannot be revenue neutral in view of the fact that in this case because service tax is being demanded from the Appellant only for the reason that the service provider is nonresident, in case service provider was located in India, service tax would have been paid by him in respect of the present transactions. Manner of payment of the tax would not change the nature of levy and in any case if the argument of revenue neutrality is accepted as permissible defense in the present case entire scheme of payment of taxes on reverse charge basis will become otiose and no business liable to pay service tax would be required to pay service tax in respect of services received by them from nonresident service providers, for the reason that the tax so paid will be available as credit to them. Penalty u/s 76 - delay in payment of service tax from the due date - Held that:- Various authorities as follows have upheld imposition of penalty under section 76 in case of delay in payment of service tax from the due date - reliance placed in the case of COMMISSIONER OF C. EX. & CUSTOMS VERSUS SJ. MEHTA & CO. [2010 (10) TMI 135 - GUJARAT HIGH COURT] - penalty upheld. Appeal dismissed - decided against appellant.
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