South City Projects (Kolkata) Limited Vs Commissioner of Service Tax (CESTAT Kolkata)
In a recent judgment, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Kolkata, in the case of M/s. South City Projects (Kolkata) Ltd. vs. Commissioner of Central Excise & Service Tax, Kolkata, Service Tax Appeal No 75130 of 2014, ruled that copyright services associated with original artistic works are exempt from service tax. The ruling, dated September 21, 2023, provides clarity on the taxability of copyright services under Section 65(zzzzt) of the Finance Act, 1994.
Facts:
M/s. South City Projects (Kolkata) Ltd., (“the Appellant”), is registered under Service Tax for providing services including “Renting of Immovable Property Service”, “Maintenance and Repair Service”, “Architect Service”, and “Club or Association Service”.
A Show Cause Notice (“the SCN”) dated October 18, 2011 was issued demanding service tax and cess amounting to Rs. 1,48,07,289/- for Renting of Immovable Property on the taxable value of Rs. 14,37,60,081/- for the FY 2010-11 (“the Impugned Period”).
The Commissioner of Service Tax (“the Respondent”) vide Order-in-original dated August 20, 2013 (“the Impugned Order”) confirmed the service tax and cess amounting to Rs. 91,23,642/- along with interest and penalty under Section 76 of the Finance Act, 1994 (“the Finance Act”) and appropriated Rs. 79,68,379/- paid by the Appellant.
Aggrieved by the Impugned order the Appellant filed the appeal before this Tribunal.
The Appellant contended that a significant portion of the confirmed demand, amounting to Rs. 8,41,684/- is related to Copy Right Services, for which no demand shall be made. Furthermore, the Appellant contended that the copyright services provided by the Appellant pertained to “Original Artistic Works”, which are exempt from service tax.
Issue:
Whether the copyright services provided by the Appellant subject to service tax?
Held:
The CESTAT, Kolkata in the case of Service Tax Appeal No 73130 of 2014 held as under:
