CESTAT set-aside penalty on Cable TV Operator for non-payment of service tax

Prime Cyber Vs Commissioner of Central Excise (CESTAT Chandigarh) CESTAT Chandigarh recently addressed a case involving Cable TV Operators (CTOs) appointed by M/s SIFY to provide internet services to customers through cable. The Department alleged that the CTOs provided ‘Business Auxiliary Services’ and should be liable for service tax. Two show-cause notices were issued to the appellant, demanding service tax, which was later reduced on appeal. The CESTAT Chandigarh found that the issue was not new and had been previously decided in favor of the Revenue in a similar case. However,...