CESTAT, an Appellate Tribunal, addressed the taxability of ...

CESTAT ruled no service tax on revenue shared with distributor for cinema hall services. In earlier case, Supreme Court upheld decision.

Case Laws     Service Tax

June 14, 2024

CESTAT, an Appellate Tribunal, addressed the taxability of Unincorporated Joint Ventures involving revenue sharing arrangements and support services of business or commerce (BSS). The appellant provided cinema hall and infrastructure to a distributor for movie exhibition, without paying appropriate service tax. Referring to precedents like PVS Multiplex and Inox Leisure, the Tribunal held that service tax cannot be imposed on the appellant u/s BSS. The Supreme Court upheld this view, affirming the Tribunal's correctness. The case is now with the Division Bench for appeal decision.

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