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TMI Blog2009 (5) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... a prima facie case against the impugned demand and penalties – stay granted X X X X Extracts X X X X X X X X Extracts X X X X ..... of (f) selling time slots of broadcasting of any programme or (h) collecting broadcasting charges or (i) permitting the right to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds (i) by transmission of 1. electro-magnetic waves through space or 2. (electro-magnetic waves) through cables, 3. direct to home signals (ii) or by any other means 1. to cable operator, including multi-system operator or 2. to any other person on behalf of the said agency or organization. The adjudicating authority found that STARL is covered under I the category (e) of sub clause (ii) of the above definition viz., any person who acts on its behalf in any manner. SARZ, the owner of channel Vijay granted c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to receive channel Vijay in India from STARL, Hongkong. VTPL charged Rs. 1,54,83,318/- from Star India Pvt. Ltd., and paid to the department under broadcasting service. The impugned demand was made on the payment of Rs. 12,04,12,000/- paid by VTPL to STARL, Hongkong on the ground that the distribution services provided by STARL were taxable under broadcasting services and the appellant as a receiver of such service was the person liable to pay service tax on such import of service. It is submitted that the definition of 'Broadcasting Service' under Section 65(15) was as follows from 16-6-2005. "(15) "broadcasting" has the meaning assigned to it in clause (c) of section 2 of the Prasar Bharti (Broadcasting Corporation of India) Act, 1990 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidiary or representative in India or any agent appointed in India or any person (in India) who acts on behalf of the Broadcasting agency or organization located outside India, engaged in the activity of permitting the rights to receive any form of communication from outside India was alone liable to tax as a 'broadcasting service'. "Broadcasting agency or organization" under Section 65(16) and the taxable service under Section 65(105)(zk), effective from 16-6-05 reads as follows : "(16) "broadcasting agency or organization" means any agency organization engaged in providing service in relation to broadcasting in any manner and, in the case of a broadcasting agency or organization, having its head office situated in any place outside India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls or by any other means to cable operator including multi-system operator or any other person on behalf of the said agency] or organization;" Vide the Budget Circular Letter F. No. B1/6/2005-TRU, dated 27-7-2005 CBEC clarified the scope of the expanded services which included the amendments made to 'Broadcasting service'. The clarification issued by the Board, provides that in the case of broadcasting agencies or organizations having their head office outside India, the liability for payment of service tax would be on the branch office, subsidiary or any representative or any agent appointed by such agency or organization in India, providing the specified activities. Thus, from the expanded scope of the broadcasting service from 16-6-05, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the branch office or subsidiary or representative in India or any agent appointed in India or any person who acts on its behalf in any manner engaged in the activity of selling of time slots for broadcasting of any programme or obtaining sponsorships for programme or any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electro-magnetic waves through space or through cables, direct to home signals or by any other means to cable operator including multi-system operator or any other person on behalf of the said agency or organization, is the persons liable to tax. It is not the case of the revenue that the person appointed or acting on behalf of the broadcasting agency or organizatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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