9911796707
TMI Blog2004 (12) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... eement with M/s. Amitabh Bachchan Corporation Ltd., who are the producers of the said serial, for acquiring the telecast rights of the same on Sony TV for an amount of Rs. 50 lakhs. 2. Subsequent to the said agreement video cassettes of the said Hindi serial were exported on two occasions vide shipping dated 27-1-1999 and 16-2-1999. In compliance to the said export agreement, third shipping bill was filed for export of recorded video cassettes on 4-3-99. However, on the basis of information that the said cassettes were overvalued, the shipping bills were not processed and enquiries were initiated. During the course of investigation, the statements of the persons who have recorded the said cassettes as also the statement of the proprietor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r description of the goods. The Commissioner has only taken the physical value of the cassettes and the cost of recording without appreciating that it is contents recorded in the said cassettes which were the subject matter of the agreement between the two parties and it is the value of the serial which is the core issue. It was further submitted that there can be no violation of FERA, 1973 or FEMA, 1999, inasmuch as the export value was received by them from their buyer. The goods are neither dutiable nor prohibited nor any claim for drawback attracting provisions of Section 113(d) and/or 113(i) of the Customs Act, 1962 and hence are not liable to confiscation. Inasmuch as the goods are not liable to confiscation, there can be no penalty u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 1.32 crores from M/s. Set Satellite (Singapore) Pte Ltd., against the different Foreign Inward Remittance (FIR) Certificates issued by M/s. Union Bank of India. He also confirmed that the overseas buyers were in possession of the original master cassettes exported earlier for the first telecast rights and that somewhere in April 1998 onwards the Sony channel started broadcasting the serial "Dekh Bhai Dekh" for the second time. To specific question as to why he was making present exports when the cassettes were already available with the buyer, and that the present exports does not have any value other than the material cost and processing charges, he admitted that he was exporting the present cassettes only to claim benefit under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial cost plus the recording charges as alleged in the show cause notice". 7. It is not disputed by the revenue that the telecast rights were purchased by the appellants at the cost of Rs. 50 lakhs from M/s. ABCL, who are the producer of the serial and there was a contract between the appellants and the foreign buyer for supply of the said cassettes with a right to telecast them for a sum of Rs. 1.32 crores, which sums stand received by the appellants. The fact that such a transaction would have resulted in benefit to the appellants under the provisions of Section 80HHC of Income-tax Act will not tilt the fact that the transaction in terms of the contract stands fulfilled by the appellants. The Commissioner's finding that these exports wer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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