TMI Blog2023 (5) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... ovider and the customer there is no sale of any tangible goods. Hence, the transaction is not taxable. The KAT has rightly held that the notices sent by AO has merely made a bald allegation that the assessee had supplied goods without referring to the particular goods or the sale transaction. Thus, the notice proposing the demand by itself was vague and contained no legal basis for proposing the demand. It has further held that the companies may receive installation charges from the customers for providing cable internet services. From such a contract it needs to be ascertained whether there is an implied transfer of cable to the customer or whether other service provider may also use the same cable for internet signal supply in which ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vocate for the Assessee. 3. Briefly stated the facts of the case are, assessee is a registered company and a Licensed Multiple System Operator. It is engaged in receiving of satellite signals from broadcasters and re-transmitting the signals to cable operators. A notice was issued under Section 39(1) of the Karnataka Value Added Tax Act, 2003 [ KVAT Act ] , proposing to demand VAT at 12.5% on the goods supplied in lieu of internet installation charges, internet monthly charges and optical installation charges received by the Company and that the assessee had not declared the receipts as taxable turnover. The AO [Assessing Officer] passed an order confirming the demand of VAT at the rate of 12.5% for A.Y. [Assessment Year] 2005-06 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axable under the Act; the Tribunal has not assigned any reasons as to why assessee s activity do not amount to sale of goods. 5. Opposing the submissions, Smt. Pallavi Shridhar, for the assessee, argued in support of the Tribunal s order. 6. We have carefully considered the rival contention and perused the records. 7. Undisputed facts of the case are, assessee provides broadband internet access by providing cable connection to its customers. The server is owned and possessed by the assessee and the modem is purchased and owned by the customer. 8. Revenue s specific case is, transferring the right to use goods is deemed to be a sale for the purpose of the KVAT Act and therefore, providing internet and cable services to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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