TaxTMI 
TaxTMI 
2024 (10) TMI 627
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.... are that the Respondent M/s Five Vision Promoters Pvt. Ltd. is the owner of Opulent Mall, G.T. Road, Ghaziabad is registered with the Service Tax Department for taxable services under the category of "Renting of Immovable Property", "Management, Maintenance or Repair Services", "Sale of Space or Time for Advertisement", "Real Estate Agent and Consulting Engineer". Show Cause Notice SCN dated 30.01.2015 was issued which culminated into Order-in-Original No.13/Comm./ST/GZB/2015-16 Dated 01.02.2016 passed by the Commissioner of Central Excise & Service Tax, Ghaziabad. In the present appeal before us, a Statement of Demand No.1/ST/ADC/GZB/2017-18 dated 23.06.2017 was issued on the basis of and subsequent to issuance of SCN dated 30.01.2015 it ....
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.... entered into agreements with the distributors of films for temporary transfer of copyrights through assignment or licensing for exhibition of movies. The Net Box Office Collection (Gross revenue from sale of tickets minus some expenses like taxes) are, as per the agreements, shared between the distributors of the films and the appellant. The allegation in the show cause notice is that this arrangement has resulted in creation of an association of persons, i.e., an unincorporated joint venture and that the appellant was providing business support services in the form of infrastructural support and operational or administrative assistance to such joint a venture. The appellant's share of Net Box Office collections is the consideration receiv....
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....nership and control of property (iii) a common purpose that the group intends to carry out (iv) community of interest in the performance of the subject- matter (v) duty, which may be altered by agreement, to share profits and losses and exercising some voice in determining division of net earnings (vi) each member's equal voice in controlling the project; community of control over, and active participation in, management and direction of business enterprise (vii) Accountable to each other for their respective acts with reference to the project; each joint venture must stand in the relation of principal, as well as agent, as to each of the other coventurers within the general scope of the enterprises. (viii) intention of pa....
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....ions relating to cancellation of the show, unauthorized use of copying of film, loss or theft of the print etc. in the agreements with the distributors are in the nature of conditions to ensure that the copyright in the film is projected, and not infringed. (xiv) Other restrictions are nothing but the general/usual clauses in the agreement whereby the distributor, as the owner of the copyright, has taken the precaution to safeguard his goodwill and reputation in permitting Appellant to exhibit the film. (xv) Appellant never hands over the control or possession of the theatre building. (xvi) Gross revenue from sale of tickets is being recognized on the revenue side in the books (Profit & Loss Account) of Appellant. (xvii) The amo....
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....ovies are made by producers investing money and the producer acquires the copy right to the movies which, he then transfers to various distributors across the country for a consideration. The distributors, in turn, enter into agreements with various cinema/ theater owners and provide license/ right to screen the movie in their theaters. The Net Box Office collections, i.e. the proceeds of sales of tickets minus some expenses such as taxes are shared between the cinema owners and the distributors. The question as to whether the share of collections received by the cinema owners can be taxed has been decided in negative by this Tribunal in the case of Service Tax Appeal No.30488-30489 of 2016 in the case of Inox Leisure Ltd Vs. Commissioner o....
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....at there was an express or implied agreement to form a joint venture. There is no joint ownership or control of the property the appellant is the owner of the distributors. The distributors own the licensing rights to the movies. They lease the rights temporarily to the appellant. The distributor has no control over how the movies will be screened which is completely up to the appellant. Since the distributor is giving rights to screen the movies, as a consideration, it receives a share of the net box office collections. There is nothing on record to show that there is an agreement to share profits and losses. Only the collections are shared after some deductions. If, for instance, the total expenses incurred by the appellant in running the....