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Appellant a multi-system cable operator provided cable services, whether liable as broadcasting service — Appellant’s balance sheet disclosed higher figure of sales for imposing tax — Revenue of the opinion that appellant is liable to pay service tax on the balance sheet figure — Appellant disagrees — Tax liability was discharged on receipt basis — Appellant’s plea partly allowed — Adjudicating Authority directed to re-compute tax liability.
Facts: The appellant was a multi-system cable operator providing cable services. An order for payment of service tax was issued to the appellant since the figures seized from their records and the figures submitted by them did not reconcile. However, the appellant contended that service tax was computed on receipts basis for the period when services were taxable viz. 9-7-2004 till 31-7-2005. The appellant, further contended that their services did not fall under the category of broadcasting service, and hence it was not liable for service tax for the impugned period. The Department alleged that according to Prasar Bharti Law, cable operators providing transmission service provided broadcasting service.
Held:
The impugned service provided by the appellant fell under the taxable category of ‘Broadcasting Service’ after withdrawal of Notification No. 8/2001-ST and service tax was leviable for the period 9-7-2004 to 31-7-2005. Direction issued to adjudicating authority to re-compute the liability accordingly. No mala fide intention of the appellant, hence penalty was waived. Only penalty for delay in payment of service tax to be imposed.
