2023 (7) TMI 955 - SCH - Service Tax

Export of services - Palace of performance services on Goods - Video Production Agency service or not - scope of Video Production Agency and Video-Tape Production - HELD THAT - On a conjoint reading of the definitions of the Video Production Agency and Video-Tape Production , it is found that the services such as editing, cutting, coloring etc. is only after recording is done of any programme, event or function on a magnetic tape or any other media or device. This is clear from the use of the words services relating thereto and such a Video-Tape Production when done by any professional videographer or any commercial concern engaged in the business of rendering such services is a Video Production Agency . Having regard to the expressed words services relating thereto and the circular dated 09.07.2001, paragraph 2 , it is found that the Tribunal has rightly interpreted the said sections. Appeal dismissed.

Summary

Issues involved: Interpretation of definitions of 'Video Production Agency' and 'Video-Tape Production' under the Finance Act, 1994

Upon hearing arguments from both parties, the Supreme Court considered the definitions of 'Video Production Agency' and 'Video-Tape Production' under the Finance Act, 1994. The Petitioner contended that the Tribunal's analysis of these definitions was incorrect, emphasizing the nature of services rendered during Video-Tape Production. On the other hand, the Respondent highlighted the significance of the recording process in the definition of 'Video-Tape Production', stating that without recording, the mere provision of services would not qualify. The Court, after a conjoint reading of the definitions, observed that services like editing, cutting, and coloring come into play only after the recording of a program, event, or function on a magnetic tape or similar device. It was clarified that a Video-Tape Production carried out by a professional videographer or a commercial entity engaged in such services constitutes a 'Video Production Agency'. The Court upheld the Tribunal's interpretation of the sections based on the wording of 'services relating thereto' and a relevant circular. Consequently, the Civil Appeal was dismissed, with a clarification that the definitions are applicable only until a specified date. Any pending applications were directed to be disposed of accordingly.