Broadcasting subscription amounts from MSOs were not taxable before the 16.06.2005 levy change.

Amounts collected from MSOs and cable operators for permitting the right to receive broadcast signals were brought within the service tax net only from 16.06.2005. Before that date, such collections were not exigible to service tax, although amounts linked to other broadcasting activities continued to be governed separately under the existing levy. The attempted characterisation of the service provider as an MSO was rejected because it acted as an agent of foreign broadcasters and was already paying tax under that category. The Revenue's appeal therefore failed.

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Issues: Whether subscription amounts collected from MSOs and cable operators by a broadcasting agent were liable to service tax for the period prior to 16.06.2005.

Analysis: The dispute turned on the scope of the amended definition of broadcasting and the Board's clarifications. The materials relied upon showed that amounts collected for permitting the right to receive signals were brought within the tax net only from 16.06.2005. Prior to that date, such collections from MSOs and cable operators were not exigible to service tax, while amounts attributable to other broadcasting activities remained separately dealt with under the existing levy. The Revenue's attempt to treat the respondent as an MSO was found to be misplaced, since the respondent was acting as an agent of foreign broadcasters and was already discharging tax under that category.

Conclusion: The amounts collected from MSOs and cable operators were not taxable for the period prior to 16.06.2005, and the Revenue's appeal failed.

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