2019 (1) TMI 445

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....pondent herein is registered with Service Tax Department under the category of "Business Auxiliary Services" and "T.V. and Radio Programme Production Service." A show cause notice dated 16.03.2007 was issued to the respondent alleging that they had not paid the service tax under "T.V. and Radio Programme Production Service", which they have rendered to M/s Ushodaya Enterprises Limited (UEL). Therefore, it was proposed to charge service tax along with interest from the respondent. It was also proposed to impose penalties under sections 76, 77 & 78 of the Finance Act, 1994. After following due process, the Ld. Commissioner dropped the proceedings in the impugned order. Hence this appeal by the Revenue. 4. The respondent herein have, inter-....

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....the infrastructure facilities of M/s UEL. In other words they produce programmes on behalf of M/s UEL as per the requirement. Lastly, the appeal is on the ground that the Commissioner held that the rights of the programmes rest with the respondent only and the broadcasting rights are only transferred to M/s UEL and there is no investigation to prove otherwise. This, according to the Revenue, is not correct as the department could have continued investigation to ascertain the facts relating to the ownership and consideration paid. The prayer of the appellant is to set aside the impugned order in view of the above submissions. 6. We have considered the arguments on both sides and perused the records. The arrangement in this specific case c....

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....respondent retaining the copy rights on the programmes produced for UEL and having the liberty to commercially exploit it in whatever manner, offering them to any other TV channels as well. Similarly M/s UEL was at liberty to source the programmes from any other producers of the programmes also. In respect of the programmes produced by the respondent and telecast by M/s UEL, there is a revenue sharing arrangement. There is nothing in this MOU to suggest that the respondent was producing programmes on behalf of M/s UEL. Section 65 (86b) of the Finance Act, 1994 defines "Programme producers as a commercial concern which produces a programme on behalf of another person." In this case there is no evidence of whatsoever that the respondent is pr....