TaxTMI 
TaxTMI 
2009 (5) TMI 111
X X X X Extracts X X X X
X X X X Extracts X X X X
....ndered by them and penalty @ of Rs. 200 per day or 2% per month on the amount demanded, whichever is higher, till the date of payment of the service tax demanded, imposed on VTPL under Section 76 of the Finance Act, 1994 (the Act). M/s. Star Asia Region FZ-LLC, Dubai (SARZ), is the owner of the Channel "Vijay". SARZ entered into an agreement with M/s. Satellite Television Asian Region Ltd. (STARL), for distribution of channel Vijay. By this agreement SARZ granted channel rights to STARL on payment of channel rights fee. STARL in turn granted VTPL, the rights of distribution of channel Vijay in India, Nepal and Bhutan. VTPL paid a licence fee to STARL in consideration of grant of these rights. VTPL in turn gave a back to back licence to M/s.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e said agency or organization. The adjudicating authority found that STARL is covered under I the category (e) of sub clause (ii) of the above definition viz., any person who acts on its behalf in any manner. SARZ, the owner of channel Vijay granted channel rights to STARL. By the said agreement, STARL acts on behalf of SARZ. Therefore, STARL based its office outside India and provided broadcasting services to VTPL in India. They received consideration in the form of licence fee from VTPL. STARL has no office in India and it is based in Hongkong. Broadcasting service provided by STARL to VTPL located in India is liable to service tax in the hands of recipient in terms of Section 66 A read with the Taxation of services (provided from outs....
X X X X Extracts X X X X
X X X X Extracts X X X X
....submitted that the definition of 'Broadcasting Service' under Section 65(15) was as follows from 16-6-2005. "(15) "broadcasting" has the meaning assigned to it in clause (c) of section 2 of the Prasar Bharti (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 organization, 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
...."(16) "broadcasting agency or organization" means any agency organization engaged in providing service in relation to broadcasting in any manner and, in the case of a broadcasting agency or organization, having its head office situated in any place outside India, includes its branch office or subsidiary or representative in India or any agent appointed in India or 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lity for payment of service tax would be on the branch office, subsidiary or any representative or any agent appointed by such agency or organization in India, providing the specified activities. Thus, from the expanded scope of the broadcasting service from 16-6-05, the services of permitting the right to receive any form of communication in India is liable to service tax, and hence the appellant being the person appointed in India to carry out the above activity is the person liable to pay service tax on the activities undertaken in India. The appellant entered into back to back license with Star India Pvt. Ltd. to distribute the Channel Vijay in India and paid service tax on the gross collections received from Star India Pvt. Ltd. After ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ns to cable operator including multi-system operator or any other person on behalf of the said agency or organization, is the persons liable to tax. It is not the case of the revenue that the person appointed or acting on behalf of the broadcasting agency or organization outside India, providing the specified services can also be a person located outside India. Thus, STARL which is based at Hongkong and who does not have any office in India cannot be the person liable to service tax under the inclusive clause of 'Broadcasting Services'. As clarified by the Board in Circular F. No. B1/6/05- TRU dated 27-2-2005, it is only the person appointed in India who is the person liable to service tax on the specified activities undertaken in India. VT....