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TMI Blog2024 (2) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... ERVICE TAX, CHENNAI [ 2018 (2) TMI 331 - CESTAT CHENNAI] has held the appellant is not liable to discharge service tax under the category of programme producing service. The contention of the department that programmes are telecast after production of the serials etc. is flimsy and not supported by any legal basis. From the above, we conclude that the disallowance of input service credit is unjustified and requires to be set aside. The appeals are allowed. - HON BLE MR. P. DINESHA, MEMBER ( JUDICIAL ) And HON BLE MR. VASA SESHAGIRI RAO , MEMBER ( TECHNICAL ) For the Appellant : Ms. Janani N. , Advocate For the Respondent : Shri M. Ambe , Deputy Commissioner / A. R. ORDER Order : [ Per Mr. VASA SESHAGIRI RAO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Similarly, the appellant is not considered as a Broadcaster as they are not broadcasting the programme. Thus, the business activity of the Appellant is to produce programmes for themselves and telecast the same through TV channels for which they get compensation in the form of Free Commercial Time (FCT) which is sold to advertising agencies to recover their charges of programme production. 1.4 The arrangement between the Appellant and the TV channels is that the telecaster pays for the entire episode inclusive of free commercial time and when the Appellant sells the FCT, Service Tax is paid on the revenue generated under the category of sale of space or time for advertisement service. The Appellant has contended that availment of credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the telecast fees charged by the TV channel is relatable to exempted service of production of TV programmes/serials on their own account and they being an exempted service, the appellant cannot take credit in terms of the provisions of Rule 6(5) of CENVAT Credit Rules, 2004 is the allegation of the Department. Thus, the dispute involved in these appeals is whether the telecast activity is solely used for exempted service or not? 2. The appellant was issued with a Show Cause Notice No. 71/2012 dated 02.04.2012 demanding an amount of Rs.1,75,66,341/-- availed as CENVAT Credit during the period from October 2010 to September 2011 which was utilized towards payment of Service Tax on their output service i.e, selling of space or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout considering the nature of their transactions. Unless the programme/serial produced by the Appellant is telecast, the appellant will not get time slot to provide the service under the category of sale of space or time for advertisement . In their case, the output service is not TV or Radio Production Programme Service in respect of their own production of programmes/serials which were assigned for telecasting on payment of telecasting fees to TV Channels but was sale of space and time for advertisement service. 5.2 Apart from reiterating the grounds of appeal, the Ld. Advocate has adverted to earlier decisions of the Tribunal Chennai in their own case for the prior periods which were decided in their favor. She has submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pute involved in these appeals on the issue of eligibility of CENVAT Credit is resolved and it is no more res--integra as Tribunal Chennai vide F.O. No. 40341/2018 dated 06.02.2018 has held as follows:-- 7. The third allegation is wrongful availment of credit on service tax paid input services. For broadcasting serials /programme produced by them, the appellant has to pay telecast charges to the broadcasting agency. In consideration of telecasting their programme, the appellant receives free time slots from the broadcasting agency. Using this free time slot, the appellant generates revenue by indulging in 'Sale of space or time for Advertisement' services. The Revenue alleges that service tax paid on telecast fees cannot be con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h various channels. For this purpose, the appellant paid telecast fees to the TV channels to obtain free commercial time from the broadcaster which was being sold to various advertisement agencies and on the consideration received by the appellant, they discharged service tax and availed Cenvat credit of such service tax paid and utilized the same for payment of service tax on the telecast fees. The department was of the view that the appellant will be not entitled to avail the Cenvat credit in question since the telecasting of the serials occurs after the production of the serials. After issue of SCN, the adjudicating authority demanded service tax with interest and penalties, during the period October 2007 to September 2010. Aggrieved by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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