2019 (1) TMI 506 - AT - Service Tax

Classification of services - Video Tape Production Services or not? - appellant rendering services like creation of special effects, improving the quality of picture or image and convert the digital image file to film etc. - Held that - The very same issue was analysed by the Tribunal in the appellant s own case PRASAD CORPORATION LTD. VERSUS COMMISSIONER OF SERVICE TAX, CHENNAI 2017 (11) TMI 435 - CESTAT CHENNAI for the earlier period where the Tribunal held that the activity does not fall under Video Tape Production Services - demand of service tax under Video Tape Production Services cannot sustain - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of services under Video Tape Production Services

Analysis:
The case involved the classification of services provided by the appellants under Video Tape Production Services. The appellants were engaged in post-production services, including computer graphics, digital restoration, and reverse telecine. The department issued show cause notices demanding service tax under Video Tape Production Services category, which the original authority confirmed. The appellant contended that their activities did not fall under Video Tape Production Services but were related to digital restoration, computer graphics, and reverse telecine. The Tribunal, in the appellant's previous case, had already held that such activities did not fall under Video Tape Production Services. The Tribunal reiterated that the services provided by the appellants did not meet the criteria for Video Tape Production Services. The Tribunal emphasized that the statutory provisions must be construed literally, and in this case, the definition of Video Tape Production Services did not apply to the appellants' activities. Therefore, the demand for service tax under Video Tape Production Services was set aside, and the appeal was allowed with consequential relief.

Conclusion:
The Tribunal, comprising Ms. Sulekha Beevi C.S. and Shri Madhu Mohan Damodhar, held that the services provided by the appellants, including computer graphics, digital restoration, and reverse telecine, did not fall under Video Tape Production Services. The Tribunal referred to its previous decision in the appellant's case and emphasized that the statutory provisions must be interpreted literally. As the activities of the appellants did not meet the criteria for Video Tape Production Services, the demand for service tax under that category was set aside. The appeal was allowed, providing consequential relief as per law.