TaxTMI 
TaxTMI 
2016 (4) TMI 454
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....us foreign broadcasters. As per these agreements, the respondents were appointed as exclusive distributors of T.V. channels broadcast by the foreign broadcasters in India. The respondents were to promote, market, sell and distribute the channels; collect the subscription revenue; use channel marks and other promotional materials. The respondents retained 15% of total subscription revenue collected through cable operators and MSOs and remitted the remaining revenue to the foreign broadcasters. 3. Revenue entertained a view that the respondents were liable to pay service tax for the period April, 2003 to 13.07.2005, though the respondents have registered and paid service tax w.e.f. 14.07.2005. The case was adjudicated and vide impugned order....
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....re appears to be a mis-appreciation of the facts to the effect that the respondents tax liability is being decided treating them as MSO. This is not correct. Ld. Counsel categorically stated that they are agents of foreign broadcasters and are rightly discharging service tax under such category all along. The amount collected from MSOs and cable T.V. Operators by the respondent are subjected to tax. He pleaded that the appeal by the Revenue is without merit. We find that the Original Authority has examined the issue in detail and arrived at the conclusion based on the legal provisions as clarified by the Board. For better appreciation, the relevant portion of the impugned order is reproduced below:- "3.3.1 The legal position that the ser....
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....h June, 2005 when the definition of taxable service of broadcasting was amended and the amount collected from MSOs/cable operators by broadcasters for permitting right to receive signals was made taxable. 3.3.3 The letter bearing F.No.149/5/2006-CX.4 dated 9th June, 2006 dealt with the doubt regarding the scope of "Broadcasting Services" as it was prior to amendment to the definition of the said taxable service in 2005 Budget. It was opined by a subordinate formation that even prior to 16th June, 2005, the subscription charges collected by the broadcasters from Multi Service Operator (MSO's) or cable operators were subject to service tax and that the amendment made in 2005 Budget only clarified the scope of the levy. The view expressed by....