TMI Blog2004 (3) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... , are representatives of M/s. Asia Today Ltd. (ATL) and M/s. Expand Fast Holdings Ltd. (EXPAND), Mauritius in India for selling time slot for advertisement and for obtaining sponsors for serials, programmes, events, etc. which would be played out by ATL/EXPAND in the various channels like ZEE TV, ZEE CINEMA, MUSIC ASIA. Appellant in ST/5/2003 are representative of M/s. Satellite Television Asian Region Limited (STAR) Hong Kong in India for selling time slot for advertisement and for obtaining sponsors for serials, programmes, events, etc. which would be telecast by STAR in the various channels like STAR PLUS, STAR NEWS, STAR WORLD etc. It is the case of the appellants that their programmes are telecast from satellite situated outside India. The signals are encrypted and beamed from outside India. These signals are received by the Multi System Operators (MSO) and Cable TV operators through decoders. These decoders enable MSOs and Cable TV operators to re-transmit the signals to the viewers subscribed to them. The signals that are broadcast may be of advertisements, serials, programmes or live events. The advertisements recorded in videotapes by the advertising agencies and programme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India. He further held that the activities carried out by the appellants are integrally connected to the activities of broadcasting and are performed in relation to broadcasting. 5. Aggrieved by the above, the assessees have come up in appeal. According to the appellants they are not engaged in dissemination of any form of communication by transmission of electro-magnetic waves through space or through cables. They collect amounts due to their principals and remit the same to them and get the commission paid for their activity. They are only providing service of selling time slot for advertisement and for obtaining sponsors for serials etc. for their principal for which they are paid an agreed commission. Therefore, it cannot be held that they are providing broadcasting service to their clients. It is further contended that the activity of ATL/EXPAND and STAR is carried out outsie India and hence is not taxable. The appellants submit that the amendment which was brought under the Finance Act, 2002 with retrospective effect could at the most make the appellants liable to pay service tax on the amount received by them from ATL/EXPAND/STAR as the case may be. The learned Counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, as in radio, or visual or a combination of both, as in television." She further submitted that even though the transmission of signals by electro magnetic wave and uplinking in the Satellite Transporter by ATL/EXPAND and STAR are outside India, their activity will still come under the definition of "Broadcasting" and a Taxable Service rendered in India. 7. We will now refer to the relevant provisions as it stood on the date of show cause notices were as follows : "Section 65(13) 'broadcasting' has the meaning assigned to it in clause (c) of Section 2 of the Prasar Bharati (Broadcasting Corporation of India) Act, 1990 (25 of 1990); Section 65(72) 'taxable service' means any service provided : (zk) to a client, by a broadcasting agency or organisation in relation to broadcasting, in any manner;" 8. Clause (c) of Section 2 of the Prasar Bharati (Broadcasting Corporation of India) Act, 1990 defines "Broadcasting" as under : "'Broadcasting' means the dissemination of any form of communication like signs, signals, writing, pictures, images and sounds of all kinds by transmission of electromagnetic waves through space or through cables intended to be received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amme or collecting broadcasting charges on behalf of the said agency or organisation. ' Explanation' . - For the removal of doubts, it is hereby declared that so long as the radio or television programme broadcast is received in India intended for listening or viewing, as the case may be, by the public such service shall be a taxable service in relation to broadcasting, even if the encryption for the signals of beaming thereof through the satellite might have taken place outside India." We are not able to accept the contention raised by the appellant and give a restricted meaning to the word "broadcasting" or "dissemination of any form of communication" even as they stood prior to amendment by Finance Bill, 2002. As pointed out by the learned DR meaning given to the word "disseminate" in all the dictionaries referred by the appellants would clearly show that unless the information or knowledge reaches the receiving end dissemination will not be complete. Meaning given to the word "dissemination" in Indian Edition 2001 the New Oxford Dictionary is 'spread or disperse (something especially information) widely'. Therefore, when the television programme and advertisements in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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