2018 (4) TMI 616

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... their input holders who supply it to their clients. The Appellants also distribute signals to their own clients who are termed as 'primary points'. They collect charges from their clients towards such services and pay to M/s SCM the fees for receiving input signals. They also pay service tax on amount so collected and are also filing ST Returns. They were issued show cause notice as to treating their service as cable service and to demand and recover service tax thereupon alongwith interest and penalty. The demand was made on the ground that they have not paid service tax on monthly amount received from their input holders and also on maintenance charges received from their MSO. The demand was confirmed and the same was upheld by the Comm....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....od of dispute. That even the applicability of small scale exemption available to them was not considered. 3. Shri Atul Sharma, ld. AC (AR) appearing for the revenue supports the findings impugned order and reiterates the grounds on which demands were confirmed. 4. We find that the Appellant is aggrieved with the impugned order on the ground that the copy of verification report relied upon by the Commissioner (Appeals) was not given to them in order to bring their version to defend their case. Further they also state that they were not given the relied upon documents and that they did not enter into any agreement with M/s SCM. Further that they did not receiv any amount from the alleged Input holders nor rendered any service to them. They ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d to pay Service Tax on the fees received from input holders and also on maintenance charges and had not shown these amounts in their ST-3. returns, against the gross taxable value. I find that the Appellant had also claimed threshold exemption during the disputed period involved in the Show Cause Notices. The main contention of the Appellant is that the charges have been confirmed in the Orders-in-Original on the basis of documents of third person, i.e. M/s Super Cable Master Network (MSO). In their letter dated 02.01.2014, the Appellant have stated that certain amounts were paid by them to M/s. Super Cable Master Network (MSO), however, the said amounts paid by the Appellant to MSO have no bearing on the case; that the Appellant had not r....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....simple fact that the payments made by the Appellant towards their inputs / input services, would at least be equal to their receipts for providing their output services. This factual position of falsification of accounts by the Appellant is also required to be seen in the context of the poor track record of the Appellant in abiding by law, as reflected in the case of non-declaration of correct number of the cable connections by the Appellant, for which a case is being pursued against them by TRAI authorities, as per the facts on record. 17. Thus, I find that the Appellant had provided cable services to input holders and also received amounts/fees from them. However, the appellant have excluded certain cable services provided by them and th....