9911796707
TMI Blog2020 (12) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... the theatrical exhibition rights for exhibition of the films were transferred to the Appellant, either for a specified number of shows and period or in perpetuity. It is in exercise of such rights obtained from the Distributors that the Appellant exhibited movies in its theatre. In lieu of obtaining such rights, the Appellant agreed to share a specified percentage of Net Box Office Collection with the Distributors, subject to the conditions specified in the agreements. In one such agreement dated January 3, 2013 entered into between M/s. UTV Software Communication Ltd. and the Appellant, the Appellant agreed to share 50% of the Net Box Office Collection, subject to a maximum theatre share of Rs. 5,00,000/-. 3. The Department, however believed that the Appellant was providing various elements of inter connected services to the Distributors, such as renting/ letting/ leasing of theatre for exhibition of films; manpower to manage the theatre operations, provision of projector and other related equipment to screen the films; arranging of power supply and providing arrangements to collect the box office collections. According to the Department, the essential character of the bundle of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion share. The terms of contract also substantiate my findings. 9.20 In view of above, the noticee's plan that there is no provision of service and hence no service tax liability is found baseless and thus their activities are rendered liable to service tax under the major head 'Renting of Immovable Property', which is taxable under erstwhile Section 65 (105) (zzzz) of the Act ibid upto 30.06.2012. Further the service provided by the noticee to the Distributors remained taxable under clause (a) of Section 66E of the Act ibid as "Declared Services" and is not covered in the negative list as provided under Section 66D of the Act after introduction of negative services regime w.e.f. 01.07.2012." xxxx xxxx xxxx "11.1 As regards to license fee, the noticee has admitted in their written submissions filed on 20.10.2014 that they had given their snack bar on license fee basis to M/s. Storage & General Services Pvt. Ltd. for license fee of Rs. 9,000/- per quarter or Rs. 36,000 per annum for running the snack bar. They have also argued that though the services are covered under the Renting of immovable service, even after taking alongwith miscellaneous receipts, were much below the thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce sheet is not leviable to service tax; and (vi) The extended period of limitation could not have been invoked in the present case. Hence, the demand till March 2012 is time barred. 7. Shri Dr. Radhe Tallo, learned Authorised Representative of the Department has however, supported the impugned order. It is his submission that the Principal Commissioner committed no illegality in confirming the demand. 8. The submissions advanced by learned counsel for the Appellant and the learned Authorised Representative of the Department have been considered. 9. It is not in dispute that the Appellant is the owner of a cinema hall. According to the Appellant, the theatrical exhibition rights were transferred to the Appellant under the agreements on the basis on which the Appellant exhibited the movies in the theatre. For obtaining such rights, the Appellant agreed to share a specified percentage of the Net Box Office Collection with the Distributors. 10. The agreements entered into between the Appellant and the film Distributors clearly indicate that the film Distributors had granted theatrical exhibition rights to the Appellant and in return of transfer of such rights, the Appellant had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Additional Commissioner (Adjudication) and the appeal filed by the Appellant to assail the said order has been dismissed by the Commissioner (Appeals). It is the dismissal of the appeal by the Commissioner (Appeals) by order dated 12 July that has led to the filing of this appeal. 2. The appellant is the owner of a cinema hall situated at Chandni Chowk, New Delhi and is engaged in the business of exhibiting films in its theatre. The copy right over the films is owned by the distributors. The appellant enters into agreements with the film distributors to obtain such copy rights under which the right to exhibit the films is transferred to the appellant, either temporarily or in perpetuity, depending upon the nature of the agreements between the parties. xxxx xxxx xxxx 11. It is more than apparent from a bare perusal of the aforesaid agreements that they have been entered into between the appellant as an exhibitor and the distributors for screening of the films on the terms and conditions mentioned therein. The payments contemplated under the terms and conditions either require the exhibitor to pay a fixed amount or a certain percentage, subject to minimum exhibitor share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stributors. 14. The next issue that arises for consideration is about the confirmation of demand on the amount received by the Appellant under 'miscellaneous receipts' and 'license fee' from Snack Bar. This demand has also been confirmed under the category of 'renting of immovable property' services. The Department had levied service tax on an amount of Rs. 4,29,759/- under the head 'license fee from snack bars and miscellaneous receipts' in the balance sheet. This demand has been confirmed under the category of "renting of immovable property" service. A further demand of service tax on the license fee of Rs. 36,000/- received from M/s. Storage and General Services Pvt. Ltd., which was running a snack bar in the premises of the Appellant, has also been confirmed. 15. The confirmation of demand of Rs. 36,000/- covered under "renting of immovable property" service is much below the threshold exemption of Rs. 10,00,000/- provided in the notification dated June 20, 2012 and hence not liable to service tax. 16. The income received by the Appellant under "Shots and Slides Hire" income is on account of exhibition of advertisement films and slides of vendors, during the showcasing of mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
