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TMI Blog2016 (4) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... ax arising out of their role as agent of foreign broadcasters and there is no dispute on that account. It is found that the Board's Circular was wrongly interpreted so as to refer with reference to the services provided by the MSOs. It is also clear from the clarification issued by the Board that the charges recovered from the broadcasting agencies from MSOs for providing the signals had been made specifically liable to service tax from 16.06.2005. Therefore, the charges recovered from the broadcasting agencies from MSOs or Cable Operators were not liable to service tax prior to 16.06.2005. - Decided against the revenue X X X X Extracts X X X X X X X X Extracts X X X X ..... and distribution of channels inevitably included selling, advertisements, spots and getting sponsorship. It was contended in the appeal that the respondents are not covered by Boards letters dated 26.09.2005 and 9.6.2006. The Board's Circulars were with reference to the services provided by MSO which became chargeable to service tax w.e.f. 16.06.2005. The respondents were not acting as an MSO and hence, the Commissioner erred in dropping the demand. 5. We have heard both the sides and perused the appeal records. 6. Ld. AR mainly reiterated the points in the grounds of appeal. 7. Ld. Counsel for the respondent submitted that the ld. Commissioner (Appeals) examined the nature of services rendered by the respondents, allegations in the sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 The letter dated 26th September, 2005 was addressed to Director General (Service Tax), Mumbai and has been signed by Joint Secretary (TRU II). The letter dealt with the issue of charging service tax on amount collected from MSOs and cable TV operators by broadcasters for selling time slots (for advertisements) and the amount collected from MSOs and cable TV operators by the broadcasters as subscription fee for allowing access to paid channels. After discussing the Circular dated 9th July, 2001 (supra) it was concluded that the said Circular clearly stated that amount collected from MSOs and Cable TV Operators by broadcasters for selling time slots (for advertisements) was includible in the value of the service of broadcasting right from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, included subscription for receiving such signs traveling through electromagnetic waves. After examining the matter it was stated that prior to 2005 Budget, in respect of the foreign broadcasting channels, the activity of selling of time slots or collecting broadcasting charges was within the tax net. In 2005 Budget, the scope was expanded to include permitting the right to receive any form of communication. In other words, whereas prior to 2005 Budget, the charges were limited to those collected by broadcasters from clients who purchased time slots to show a telecast (say a TV serial, a cricket watch or an advertisement), after 2005 Budget, the tax was also extended to such customers (of the broadcaster) who subscribed/pay the ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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