TaxTMI 
TaxTMI 
2026 (5) TMI 1738
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....em along with interest under Section 75 of the Finance Act, 1994. I drop the rest of demand of Service tax of Rs. 98,720/- (ii) I impose penalty of Rs. 5,000/- upon M/s. Anand Globe Vision Cable Network, (Proprietor Shri Manoj Tiwari), 128/45, F Block, Kidwai Nagar, Kanpur, under Section 76 of the Finance Act, 1994. (iii) I do not impose any Penalty under Section 78 of the Finance Act, 1994. (iv) I do not impose any Penalty under Section 77(1)(a) of the Finance Act, 1994. (v) I impose penalty of Rs.10,000/- each under Section 77 (1) (b), 77(1)(c) & 77 (2) of the Finance Act, 1994." 2.1 On the basis of specific information that appellant was providing Cable Operator Services taxable under Finance Act, 1994, and they were not paying the service tax on the complete value of services rendered by them, inquiry was initiated against the appellant. Appellant was vide letter dated 27.11.2017 asked to furnish the required information. Subsequent reminders dated 19.01.2018, 24.05.2018 and 10.08.2018 were issued to the appellant 2.2 As appellant was not cooperating and providing the requisite information therefore vide letters dated 25.09.2018, 09.10.....
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....Section 68 of the Finance Act, 1994 read with Rule 6 of Service Tax (Determination of Value) Rules, 2006. (iv) Penalty should not be imposed upon them under Section 77(1)(a), 77(1)(b), & 77(1)(c) of the Finance Act, 1994, for failure to take registration under the category of "Cable Operator Service" within time and manner as prescribed under Section 69 of the Finance Act, 1994 read with Rule 4 of the Service Tax Rules, 1994, failed to maintain books of Accounts and other documents, failed to furnish information and produced documents called by the Department; (v) Penalty should not be imposed upon them under Section 77(2) of the Chapter V of the Finance Act, 1994 for contravention of Section 70 of the Act ibid read with Rule 7 of the Rules ibid." 2.5 The said show cause notice was adjudicated as per the Order-in-Original dated 15.04.2019 referred in para 1 above. 2.6 Aggrieved appellant have filed appeal before Commissioner (Appeals), who vide the impugned order rejected the appeal of the appellant. 2.7 Aggrieved appellant have filed this appeal. 3.1 Appellant is absent on call. I also observe that appellant has never responded to any of the notice fo....
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...., designed to provide cable service for reception by multiple subscribers, "Subscriber" is defined as per Section 2(i) of the CTN Act to mean any individual or association of individuals or a company or any other organization or body who receives the signals of cable television network at a place indicated by him or it to the Cable Operator without further transmitting it to any other person. The definition of the cable services under the Act was amended w.e.f. 10.9.2004 as Taxable services" means any service provided to any person by a cable operator including a MSO in relation to cable service. Subsequently, w.e.f. 16.6.2005 the definition of taxable service was amended as Taxable service means any service provided or to be provided to any person by a cable operator including MSO in relation to cable service." So the services provided by both cable operator and MSO continued to be taxable within the scope of definition of 'service' and 'taxable service' given under Section 65B (44) of the Act which emphasized that "service" means any activity carried out by a person for another for consideration, and includes a declared service after introduction of negative tax r....
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....Cable Television Network" as per section 2(c) of the CTN on other hand means any system consisting of a set of closed transmission paths and associated signal generation, control and distribution equipment designed to provide cable service for reception by multiple subscribers. Hence there are two main ingredients in the definition of the Cable Television Network, one is cable service and the other is subscribers. The "Cable Service" is defined in Section 2(b) of the CTN Act to mean transmission by cables of programmes including re-transmission by cables of any broadcast television signals while "Subscriber" has been defined in Section 2(f) of the CTN Act to mean any individual or association of individual or a company or any other organization or body who receives the signals of cable television network at a place indicated by him from MSO or the cable operator, without further transmitting it to any other person. In view of these definitions it is clear that LCO is the cable operator when he re-transmits the TV signal as he fulfills the definition of the term Cable Operator when he provides cable service to the last mile subscriber. 4.3.3 The same view has been taken by ....
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....ection 65/22) is as per definition under Section 2(b) of the Cable Television Networks (Regulation) Act, 1995 which IS: "cable service" means transmission by cables of programmes including re-transmission by cable of any broadcast Television signals." 7.1 Thus, the said definition also includes services provided by "Multi System Operator". It is further pointed out that there is no system of double burden as Cenvat Credit Rules have been applicable to give credit of the amount of service tax on the input by MSO which can be utilised on output services by cable service providers to the viewers. 8. We have considered the rival submissions and perused the record. 9. In view of clear definition of "service" as "service to any person" by a cable operator including "a Multi System Operator", contention raised on behalf of the petitioners that Multi System Operator was not liable to pay service tax, unless service was rendered to a viewer or consumer, has no merit. Similarly, contention that service tax is required to be paid twice on the same service is also without any merit, in view of the stand taken on behalf of the State in the written statement t....
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....ying service tax, therefore, the signals provided by the MSO to the appellants is an input services for the appellants. Therefore, the service tax paid by the MSO is available as Cenvat credit to the appellants. Applying the ratio decided in the above decision of the Hon'ble CESTAT, I hold that the Cenvat credit of total service tax amount on input service used for providing taxable service during relevant financial years is allowed to the appellant subject to fulfillment of other such conditions as provided under the Cenvat Credit Rules, 2004 for the admissibility of the same. In the instant case appellant has neither registered with the department during relevant period nor filed statutory ST-3 returns showing availment /utilization of eligible CENVAT credit in the said returns. Thus, it is evident that the appellant failed to avail CENVAT Credit on input services within prescribed limit of six months/one year thereby contravened the sixth proviso to the Rule 4(7) of the CENVAT Credit Rules, 2004. It is well settled principle that the claim of CENVAT Credit taken and/or utilized crystallizes only when the appellant has maintained CENVAT credit records & files statuary returns....
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....imitation i.e. within thirty months from the relevant date i.e. date of filing the ST-3 return, the demand is not barred by limitation. Further I observe that order in original has re-determined the demand of service tax as detailed in table below (para 22.1 of the order in original): 22.1 In view of the above findings the service tax liability for the relevant period (April 2016 to June 2017) is calculated as under: (i) Service Tax liability for 2016-17 Entertainment Tax @ 25% paid by party Total amount received by the party (including Entertainment Tax) amount received by the party (excluding Entertainment Tax) Rate of Tax Service Tax required to be paid (in Rs) Service Tax Paid as per ST-3 returns (In Rs) Service Tax Not paid by the party A B C D E F G 555104 2220416 1665312 15% 249797 252331* 0 *As already mentioned in the SCN (ii) Service Tax Liability for April 17 to June 17. Entertainment Tax @ 25% paid by party Total amount received by the party (including Entertainment Tax) amount received by the party (excluding Entertainment Tax) Rate of Tax Service Tax requi....
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.... A manufacturer who is working under the Modvat Scheme can certainly utilise the credit of the duty paid on the inputs used in or in relation to the manufacture of final product for payment of duty on such final product; but he has to take credit on such inputs within six months from the date of issue of the duty paying documents. After the amendment credit cannot be taken on duty paying documents which are more than 6 months old. 13. In view of the above discussions, we answer the question referred to Larger Bench in the favour of Revenue. Therefore, the view taken in case of Osram Surya Pvt. Ltd. v. Commissioner of Central Excise, Indore, reported in 1998 (29) RLT 684 is the correct view and the contrary view taken in correct. 14. No other issue is involved in the appeals. Therefore, the appeals are being taken up for disposal. The appellants availed the benefit of Modvat credit on documents after six months from the date of their issue. After amendment to Rule 57G of Central Excise Act, the appellants are not entitled to such credit. The appeals are accordingly dismissed." 4.5 I also note that the view taken by the Tribunal have approved by Hon'ble Supreme C....
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.... as above, we may consider certain salutary principles regarding the principle of limitation, to test the argument of the applicants. 11. The law of limitation is based on delay and laches. It does not bar the right but the remedy. One of the most important and universal rules (which is not, however, without exception in English law) is that time, when it has once commenced to run in any case will not cease to do so by reason of any subsequent event which may be within the saving of the statute. Of this there is a well-known instance drawn from the time of the English civil wars. In answer to a plea of the statute, the plaintiff replied that a civil war had broken out, and the Government was usurped by certain traitors and rebels, which hindered the course of justice, and by which the courts were shut upon and that within six years after the war ended he commenced his action and yet his replication was held to be bad. 12. The law of limitation is not one of substance but of procedure. The object of prescribing limitation is to put an end to litigation, or to state it in other words, litigation may attain a finality. 13. The other principle of interpretati....