Case Law Details
Inox Leisure Ltd. Vs Commissioner of Service Tax (CESTAT Hyderabad)
Appellant exhibits/ screens the movies provided by the distributor – consideration is paid by the appellant to the distributor based on the agreed percentage – department demanded service tax considering the same as BSS – Held no service tax can be levied on the appellant under BSS
Facts-
The appellant is engaged in the business of exhibiting cinematographic films across India in theatres owned by the appellant or taken on rent. The consideration towards such license is paid by the appellant as per the agreed percentage of box office collection and such percentage varies from distributor to distributor, movie to movie and week to week, after the release date.
The department issued notice proposing recovery of service tax on the same. The main issue involved is whether the activity carried out by the appellant fall within the ambit of BSS.
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