2015 (12) TMI 1320

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e an exercise to bring music companies into the picture to determine incidence of tax. Revenue proceeded on the fact that what was realized by the appellant was undisputedly in respect of taxable service provided to the telecommunication operators. That receipt should be brought into the tax ambit. They have done so. The appellant has collected appropriate service tax in respect of the value of service provided to the telecommunication operators. That does not give any scope to bifurcate tax element. Prima facie, examination of the license agreement extracted by the learned adjudicating authority in the impugned order shows that the copyright holder was also aware that the appellant is going to exploit the copyright for mutual benefit of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t billed to telecommunication companies which included royalty, tax shall be paid thereon. Appellant has already paid tax on the royalty component with effect from 1.4.2010 when taxing entry therefor came up. Surprisingly, Revenue is taxing royalty from 1.5.2006 which is not permissible under law. 4. It is also submission of the appellant that when the appellant was complying to the law paying tax under business auxiliary serviceand the show cause notice has also recognized that, there cannot be a different view subsequently intending to classify under the three proposed category. The entire adjudication is also time-barred. 5. With the aforesaid proposition, appellant says that there may be waiver of predeposit during the pendency of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... l about classification which may be gone into detail if required in the cause of regular hearing. But established fact on record is that appellant provided service to telecommunication operators to make use of the contents provided to it though the copyright agreement entered into with the music companies. Prima facie, examination of the license agreement extracted by the learned adjudicating authority in the impugned order shows that the copyright holder was also aware that the appellant is going to exploit the copyright for mutual benefit of each other. Therefore, at this stage it looks like a case of advancement of business of music companies by the appellant. Therefore, prima facie, liability of appellant arises. 10. Taking into cons .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X