ESOP expenditure allowed as FMV difference; long-term capital gain issue sent back for collector rate determination; deferred income additions disallo...
Appeal allowed; impugned order quashed as regulator failed to prove nexus or manipulative scheme; sale genuine - s.12A(a)-(c), Regs 3(a)-(d),4(1),4(2)...
Appellant's ring-back tone service held OIDAR, taxable domestically for 01.07.2012-31.07.2016; liability confirmed, penalties vacated, remanded for re...
The CESTAT allowed the appeal and set aside the impugned order, holding that under a revenue-sharing agreement the appellant (A) did not lease the immovable premises but procured management services from the operator (B); the consideration received was not fixed rent but variable receipts linked to box-office revenue, and thus did not constitute renting of immovable property. Consequently A was the service recipient, not the service provider, and any service tax liability would lie on B. The Tribunal further found prior precedential authority dispositive and concluded the show-cause notices were without merit as applied, extinguishing the recovery, interest and penalty directed by the adjudicating authority.
The CESTAT allowed the appeal and set aside the impugned order, holding that under a revenue-sharing agreement the appellant (A) did not lease the immovable premises but procured management services from the operator (B); the consideration received was not fixed rent but variable receipts linked to box-office revenue, and thus did not constitute renting of immovable property. Consequently A was the service recipient, not the service provider, and any service tax liability would lie on B. The Tribunal further found prior precedential authority dispositive and concluded the show-cause notices were without merit as applied, extinguishing the recovery, interest and penalty directed by the adjudicating authority.
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