Case Law Details
Coxswain Technologies Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai held that agreement entered that the appellant is providing uplinking service for ‘SS Music channel’ and ‘Sur Sangeeth Channel’ is only a sham document. Appellant has disguised the rendering of Broadcasting Service under cover of uplinking service. Hence, service tax demand invoking extended period of limitation sustained.
Facts- The appellant is engaged in operating television channel and also uplinking facility for third party and has obtained registration under the category of ‘Business Support Service’ (BSS).
During the course of audit of accounts it was noticed by the Internal Audit Group of Service Tax Commission rate that the appellant had accounted the income under the head ‘Fees for allotment of air time and uplink income’. It appeared to the department that the allotment of air time was relating to broadcasting service and that the appellant is primarily engaged in the business of television broadcasting. The appellant had not paid service tax under the category of Broadcasting Service which has come into effect on 16.07.2001.
Accordingly, the show cause notice was issued demanding service tax under the category of ‘Broadcasting Service’ along with interest and for imposing penalties. After due process of law, the original authority vide order impugned herein upheld the demand of Rs.78,38,768/- along with interest and imposed equal penalty u/s. 78 besides imposed penalty u/s. 77 of the Finance Act, 1944. Aggrieved by such order, the appellant is now before the Tribunal.
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