VAT levy on cable television services requires an enabling charging provision before any apportionment of value can be taxed.

Cable television network services were examined in the context of whether consideration attributable to set top boxes could be brought to tax under the Uttar Pradesh Value Added Tax Act, 2008 without an enabling charging provision. The analysis states that the provider remained a service provider, and the mere presence of an element relatable to supply of goods did not by itself justify VAT levy. It further states that tax liability cannot be imposed through calculation, bifurcation or apportionment of the total value unless the charging statute first authorises such a levy. On that basis, no VAT liability was sustained.

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Issues: Whether the assessee, engaged in providing cable television network services and receiving value that included set top box consideration, could be assessed to tax under the Uttar Pradesh Value Added Tax Act, 2008 in the absence of an enabling provision.

Analysis: The assessee was found to be a service provider, and the mere presence of an element relatable to supply of goods did not by itself justify levy under the VAT regime. Tax liability could not be fastened on the basis of calculation, bifurcation or apportionment of the total value unless the charging statute first provided a legal basis for such levy.

Conclusion: The revision failed on merits, as no VAT liability could be sustained on the stated basis against the assessee.

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