AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2013 (9) TMI 666
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....Media Private Ltd. are engaged in providing the taxable service of Broadcasting Services and is registered with the department as such. Audit of the records of the appellant for the period from July 01 to September 03 to October 03 to November 04 revealed that the appellant had received income on account of transmission of music clippings in between running of the programmes but has not included the same in the taxable value of the services rendered. The receipt of such income was also not included in the service tax returns filed by the appellant. Accordingly a show casue notice dated 3-2-2006 was issued to the appellant proposing the classify the service rendered under the category of Broadcasting services and demanding a service tax of R....
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....ivities are not remitted to MSMS and are accounted as income of the appellants in their books of accounts. (c) The activity undertaken by the appellant comes under the category of sale of advertising space or time which was brought under the tax net for the first time in Budget 2006. The circular 334/4/2006-TRU dated 28-2-06 makes this position very clear. Therefore, the demand of service tax for the period prior to enactment of the Finance Bill, 2006 is not sustainable in law. (d) In as much the income received is reflected in their books of accounts, the appellant can not be charged with suppression of facts and hence extended period of time can not be invoked to confirm the service tax demand. Consequently, th....
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....ion 2 of the Prasar Bharati (Broadcasting Corporation of India) Act, 1990 (25 of 1990) and also includes programme selection, scheduling or presentation of sound or visual matter on a radio or a television channel that is intended for public listening or viewing, as the case may be; and in the case of a broadcasting agency or organisation, having its head office situated in any place outside India, includes the activity of selling of time slots or obtaining sponsorships for broadcasting of any programme or [collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electro-magnetic waves through space or through cable....
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....tside India, includes service provided by its branch office or subsidiary or representative in India or any agent appointed in India or by any person who acts on its behalf in any manner, engaged in the activity of selling of time slots for broadcasting of any programme or obtaining sponsorships for programme or [collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electro-magnetic waves through space or through cables, direct to home signals or by any other means to cable operator, including multisystem operator or any other person on behalf of the said agency] 121 or organisation.] Explanation. -....
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....efined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867, but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes;]" 5.3 From the legal provisions extracted above, the activity undertaken by the appellant come under the scope of "broadcasting" as defined in section 65 (15) and the appellant is a "broadcasting agency" as defined in section 65 (16) of the Finance Act, 1994. Consequently the activity undertaken by the appellant is a taxable service as defined in section 65 (105)(zk). The activity of sale of space or time by a broadcasting agency is specifically excluded under section 65 (105) (zzzm). What, therefore, follows from a plain read....