OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE:: MADURAI-625 002.
Trade Notice No. 18/2009 Dated: 13.03.2009. Service Tax No. 10/2009
Sub: – Service Tax – Demand of Service Tax on CBFC – Regarding.
The issue whether service tax is payable by Central Board of Film Certification under the category of ‘Technical Testing and Analysis Service’ and / or ‘Technical Inspection and Certification Service’, on the services provided by Central Board of Film Certification by way of certification of films has been examined by Board.
2. Central Board of Excise & Customs has issued the following clarification:
“The certification by Central Board of Film is done to ensure that film is suitable for exhibition and not against interest of sovereignty and integrity of India, the security of the State, friendly relation with foreign States, public order, decency or morality or involves defamation or contempt of court etc. It is a mandatory requirement under the provisions of Cinematographic Act, 1952. The Act provides that any person, who exhibits a film other than a film which has been certified by the Board as suitable for unrestricted public exhibition or for public exhibition restricted to adults, he shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to one lakh rupees, or with both, and in the case of a continuing offence with a further fine which may extend to twenty thousand rupees for each day during which the offence continues. Hence certification by Central Board of Film Certification is a statutory requirement. CBEC vide Circular No.96/7/2007-ST dated 23.08.2007 has clarified that any activity assigned to and performed by a sovereign / public authority under the provisions of any law, do not constitute taxable services. Any amount / fee collected in such cases are not to be treated as consideration for the purpose of levy of service tax. In the instant case, CBFC issues certificates as required under the provisions of law i.e., Cinematographic Act, 1952 and thus does not constitute taxable service.”
3. This may be brought to the notice of all constituent members of your trade associations.
( Authority: Board’s clarification communicated vide Directorate General of Service Tax, Mumbai letter F.No.V/DGST/30-Misc.-185/2008/429 dated 16.01.2009)
( Issued from File C.No:IV/16/06/2009-STU )