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TMI Blog2011 (6) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... nsequences of law to follow? 2. Learned Counsel Shri Krishnan appearing on behalf of the appellant submits that in so far as the first issue relating to Cable Operator Service is concerned that is covered by Section 65(105)(zs) of the Finance Act, 1994 (hereinafter referred to as "the Act") read with Section 65(21) thereof and service tax demand of Rs. 23,44,400/- was levied with other consequences of law. He invites our attention to the taxing entry under Section 65(105)(zs) of the Act to submit that "Multi-system operator" providing cable service were brought to ambit of service tax w.e.f. 10-9-2004 under fold of "cable service". Accordingly, when the appellant come to know that appellants liability arose, liability was worked out excluding past considerations received and future consideration receivable from the gross receipts and tax thereon was paid. Reconciliation of alleged figure in balance sheet was done with book figures and tax liability of Rs. 20,49,897/- was calculated as well as paid Rs. 15.50 lacs vide following four challans making adjustment of Rs. 4,63,000/- from Cenvat account : Challan No. Date Amount 1. 3-9-2005 Rs. 5 lakhs 2. 15-9-2005 Rs. 5 lak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... category of "Broadcasting service" provider by a Broadcasting agency. The term broadcasting service is defined by Section 65(15) and (16) of the Act. The term has adopted meaning of broadcasting as given to that term under Prasar Bharti Law. Such meaning no way brings the appellant to the fold of Broadcasting service under the Act for levy of service tax. According to him, if the service is provided through space and that too by transmission of electro magnetic waves, there may arise liability under the category of "Broadcasting service". But present appellant being a multi-system operator was not carrying out any activity of transmission of electro-magnetic wave. It was only transmitting viewables through cable as cable operator. Therefore, when cable operator meaning is very clear under law, meaning of broadcasting service cannot bring a cable operator to the fold of law under Section 65(105)(zk) of the Act. 7. According to Shri Krishnan, the moot question involved in the second issue is classification of service under appropriate category. When law was complicated to understand statutory provisions, liability if any incurred and statutory obligation if any arose that needs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... So far as first issue is concerned there being an admitted liability which was averred to be discharged in terms of different challans as depicted, there is nothing much to dialate on the issue because taxing entry under Section 65(105)(zs) brought "Multi-system operator" to the category of cable operation service using the word "in relation to". Because of such inclusion the appellant is liable to service tax as "Cable operator" for the service of multi-system provided by it under the taxing entry under Section 65(105)(zs) read with Section 65(21) of the Act w.e.f. 10-9-2004 and liability under law is to be worked out making proper reconciliation of the figures appearing in balance sheet and figures in the books of account maintained subject to safeguard measure that account maintained in the seized computer as is recorded in para 2 to para 7 of the adjudication order is not in variance with the figures submitted by assessee. In case of variation appropriate inference is to be drawn. 12.2 The appellant having stated that reconciliation statement was given in adjudication there may not arise difficulty to re-examine the figures of the previous year and succeeding year w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook figure differs, and the authority is not satisfied about reasons of discrepancy, if any adduced, he may invoke penal provisions of Section 78 of the Act. 13. We have examined the second issue as aforesaid. It appears that there was confusion in law as to whether service provided by a cable operator without capturing the viewables from satellite amounts to "broadcasting service". In this connection, we have examined meaning of the term "broadcasting" appearing in Section 65(15) of the Act. Meaning of such term has been borrowed from Section 2(c) of Prasar Bharti (Broadcasting Corporation of India) Act, 1990. According to that section broadcasting "means" dissemination of any form of communication like signals, writing, picture, images and sound through space or cable to the general public directly or indirectly through medium of relay. Appellant disseminated viewables through cable resulting in broadcasting service. The moment communication is disseminated to the general public either through space or cable that become broadcasting. Such a service being provided by the appellant, it falls in the category of "broadcasting service" and that is taxable under Section 65(105)(z ..... X X X X Extracts X X X X X X X X Extracts X X X X
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