TMI Blog2022 (5) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, only transmit the signals of various TV channels belonging to different broadcasters to LCOs who, in turn, retransmit signals for viewership by their own viewers. If the Petitioners are only transmitting the signals, then, in such an event, they cannot be made liable to pay advertisement tax in terms of the Advertisement Tax Act. The advertisement is not exhibited at its place, as the MSOs only transmit the signals of various channels belonging to different broadcasters to LCOs, unless the Respondents could demonstrate that the MSOs independently received the advertisements. The MSO in the present case only retransmits the programing services received from broadcaster and/or his authorized agency or transmits his own programing servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 28th July 2016 and 11th August 2016. Under the impugned orders, the Petitioners are imposed with penalty and fine and also directed to make payment of advertisement tax being broadcast through their network for the Financial year 2014-2015 and 2015-2016. 3. The Petitioners are carrying on the business, inter alia, as Multi System Operator (MSO). It is the case of the Petitioners that they being MSOs, transmit signals of various TV channels belonging to different broadcasters to local cable operators (LCOs). Thereupon, the LCOs under their own independent agreements with viewers/subscribers in different localities, distribute and retransmit the signals for viewership by their own viewers. 4. Learned Advocate for the Petitioners s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... because neither the Petitioners on its own display any advertisement nor it receive any advertisement income from any of the advertisers and therefore, question of levying tax on advertisement, penalty and recovering the same from the Petitioners is illegal and bad in law. The learned Counsel submits that the reliance of Respondent No.2 on Rule 6 of the Cable Television Networks Rules, 1994 (Rules of 1994) is misplaced. The learned Counsel further submits that under the provision of the Maharashtra Entertainment Duty Act 1923 (Entertainment Duty Act) no power exists to recover the alleged advertisement tax. 6. It is submitted by the learned Counsel for the Respondents that the Petitioners are MSOs and conducting their business thereby tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous reception either by multiple subscribers directly or through one or more local cable operators (LCOs), and includes his authorized distribution agencies by whatever name called; 10. It would appear that MSO is a cable operator who receives a programming from service broadcaster and/or his authorized agencies and re-transmits the same or transmits his own programming service for simultaneous reception either by multiple subscribers directly or through one or more local cable operators (LCOs). The MSO is also defined under Section 2(a-ab) of the Entertainment Duty Act. The definition of it is the same as provided in the Rules of 1994. 11. Section 3 of the Advertisement Act prescribes the tax on advertisement . Under Section 3 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... smit the signals of various channels belonging to different broadcasters to LCOs, unless the Respondents could demonstrate that the MSOs independently received the advertisements. 13. Tax has to be under the authority of law. Article 265 of the Constitution of India prescribes that no tax can be levied except under the authority of law. The Respondents have to demonstrate that they have authority under the statute and/or rules to levy and collect the advertisement tax from the MSOs. In absence of the statutory authority, the Respondents would not be in a position to collect and levy the advertisement tax upon the Petitioners. The Respondents will have to demonstrate that the advertisement is exhibited at the place of Petitioners so as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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