TaxTMI 
TaxTMI 
2024 (2) TMI 88
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....hey are also engaged in producing programmes/serials for other persons. They have obtained Service Tax registration under categories of "TV or Radio Programme Production" and "Sale of Space or Time for Advertisement" services. 1.2 The Appellant pays Service Tax on the programmes/serials produced by them on behalf of other persons under "TV or Radio Programme Production Service". For telecasting their own programmes, the Appellant pays telecasting fees to the Broadcasters who collect Service Tax on the said telecast fees under "Broadcasting Service". The Broadcasters give Free Commercial Time (FCT) which is usually 240 seconds per episode of 30 minutes which in turn is sold by the Appellant to different customers for broadcasting their ad....
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....actual telecasting time of the programme and no telecast fee is charged for the commercial time which is given as free. The production of own programme/serial is not a taxable activity and it becomes an exempted service in terms of the definition 2(e) of CENVAT Credit Rules, 2004. The Department is of the view that in terms of Rule 6(1) of CENVAT Credit Rules, 2004, the appellant seems to be not eligible for the CENVAT Credit on such quantity of input or input services which are used for the provision of exempted service and as such the Appellant's contention regarding its eligibility for CENVAT Credit on the telecast fees paid appears to be not correct. 1.5 Per Contra, the Appellant's contention is that they are entitled for credit as t....
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....g the period from October 2011 to September 2012 and utilized towards payment of Service Tax on output service apart from demanding interest and proposing imposition of penalties under Section 76 of the Finance Act, 1994 and also under Rule 15(1) of the CENVAT Credit Rules, 2004. 3. After due process of adjudication, a common order was passed by the Commissioner of Service Tax vide Orders--in--Original Nos. 55&56--13--14 dated 30.01.2014 confirming the demand of Rs.3,50,84,169/-- being the CENVAT Credit wrongly taken and utilized for the period from October 2010 to September 2012 under Rule 14 of the CENVAT Credit Rules, 2004, read with Section 73(1) of the Finance Act, 1994 and Section 73(2) of the Finance Act, 1994. Further, a penalty ....
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....the identical issue of denial of CENVAT Credit of Service Tax paid on telecast fee for discharging the Service Tax liability on 'sale of space or time for advertisement service' and 'TV and radio production programme service' for the period from October 2007 to September 2010 has held that the impugned orders were liable to be set aside by relying again on the Appellant's own case vide Final Order No. 40341/2018 dated 06.09.2018. The appellant prayed for allowing the appeals. 6. The Ld. Authorised Representative Shri M. Ambe representing the Department has affirmed the findings of the Original Adjudicating Authority. He has argued that their own programmes/serials produced by them are exempted from payment of Service Tax and so whatever ....
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....is view made by the Ld. A.R. Without telecasting programmes, the appellant will not get the free time slots. Without obtaining the free time slots appellant will not be able to provide output service of 'Sale of space or time for Advertisement' services. Thus, the telecasting charges paid are used for providing the said output service of 'Sale of space or time for Advertisement'. We have already found that the appellant is not liable to discharge service tax under the category of programme producing service. The contention of the department that programmes are telecast after production of the serials etc. is flimsy and not supported by any legal basis. From the above, we conclude that the disallowance of input service credit....