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of <h1>Tribunal rules rental of Set Top Boxes a deemed sale not subject to service tax.</h1> <h3>M/s Dish TV India Ltd Versus Commissioner of Central Excise & Service Tax-Aurangabad</h3> M/s Dish TV India Ltd Versus Commissioner of Central Excise & Service Tax-Aurangabad - TMI Issues Involved:1. Consideration of Additional Grounds2. Judicial Decorum and Participation by Revenue Officers3. Nature of Activity and Taxability of Set Top Boxes (STBs)Summary:1. Consideration of Additional Grounds:The appellants and the Revenue filed miscellaneous applications under Rule 10 of the CESTAT (Procedure) Rules for consideration of additional grounds. The Tribunal heard the applications and found the averments justified for consideration, thus dismissing the objections raised by the Revenue. The appeals were taken up for hearing and decision on merits.2. Judicial Decorum and Participation by Revenue Officers:The Tribunal noted inappropriate conduct by the Commissioner of CGST and Central Excise, Aurangabad, who sought unnecessary adjournments and claimed ignorance of the appellants' additional grounds despite evidence of service. The Tribunal emphasized the need for proper judicial decorum and recommended that the supervising authorities take appropriate action against such conduct.3. Nature of Activity and Taxability of Set Top Boxes (STBs):The appellants provided broadcasting services through DTH and supplied STBs to customers on a rental basis, treating the transaction as a deemed sale and paying VAT. The Revenue argued that the rental charges for STBs should be included in the taxable value for service tax under broadcasting services. The Tribunal examined the definitions and statutory provisions for 'broadcasting' and 'Supply of Tangible Goods for Use' (STGU) and concluded that the provision of STBs is outside the scope of broadcasting services.The Tribunal referred to judicial precedents, including the Hon'ble Supreme Court's judgment in Quick Heal Technologies Limited and the Hon'ble Tripura High Court's judgment in Bharti Telemedia Ltd., to establish that the effective control over the STBs was with the customers, making the transaction a deemed sale subject to VAT and not service tax. The Tribunal also dismissed the Revenue's reliance on the UCN Cable Network Pvt. Ltd. case, as it did not consider the relevant High Court judgment.Conclusion:The Tribunal set aside the impugned orders, holding that the appellants' provision of STBs on a rental basis is a deemed sale, not subject to service tax. The appeals were allowed in favor of the appellants.
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