2009 (7) TMI 806

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....appellants in the impugned order and has disallowed them Cenvat credit of Rs. 2,20,95,627/- and Rs. 1,23,14,140/-. He has also demanded interest and imposed a penalty of Rs. 10 crores on the appellants. 2.Shri. A.P. Datar ld. Senior Counsel has argued inter alia as follows :- (a) The appellant is engaged in production of teleserials and registered under the category of 'TV or Radio Programme Production' and 'Sale of Space or Time for Advertisement Service'. The main business modules are as under : (i)      Production of teleserials and assigning the right permanently to the broadcaster; (ii)    Production of teleserials and telecasting the same through the broadcaster; (iii) ....

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....tually. Further, in page 3 of the show cause notice, it is clearly recorded that the activity of assigning copyright of programmes produced by the assessee to the broadcasters clearly amounts to sale of programmes. The transaction is in the nature of sale of goods which cannot be subjected to Service tax. The Madras High Court in the case of A.V. Meyappan v. Commissioner of Commercial Taxes (1967) 20 STC 115 has held that the term 'goods' include copyright. Further, the Apex Court in the case of Joint Commercial Tax Officer v. Smt. Pankajammal - 1991 (80) STC 391 has upheld the decision of the Madras High Court in the case of A.V. Meyappan cited supra. Copyright is considered as goods under the State Sales Tax Law. Further, the activity of ....

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.... of Service tax under the category of 'Sale of space or time for advertisement'. Unless the serials are broadcast, the appellant would not be entitled for free commercial time. The free commercial time is sold to various advertising agencies for consideration and Service tax is being paid on the same. The Larger Bench of the Tribunal in the case of ABB Ltd. v. Commissioner of Central Excise - 2009 (15) S.T.R. 23 (Tri.-LB) = 2009-TIOL-830-LB has held that the expression activities relating to business has a wide import and includes both essential and auxiliary activities of business. The Tribunal further held that the definition of the input service has to be interpreted in the light of the requirements of the business and it cannot be read ....