By Puloma Dalal, Jayesh Gogri, Mandar Telang Chartered Accountants
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Whether carriage fees charged for providing desired frequency for broadcasting channels signals would be classifiable under BAS or BSS?
Facts:
Appellant provided broadcasting & cable TV services and were registered as such. SCN was issued raising the demand of service tax on carriage fees received for providing desired frequency for broadcasting channels signals under business auxiliary service. Also demand was raised under Lease Circuit service for amount received for providing voice & data circuit service. Demand was confirmed with interest and penalties.
Held:
Carriage fees charged from different channels for providing desired frequency for broadcasting their channel’s signals which facilitates better quality view of channel. Better quality of channels enhanced the viewer-ship of channel and thus amounted to promotion of broadcasting channel and therefore classifiable under business auxiliary service.
Original authority classified voice & data circuit service under Lease Circuit service for a certain period and under telecommunication service for subsequent period. Appellate authority in its Order classified the said service under telecommunication service. Both the departmental authorities have not given any findings on the applicability of the said classification and therefore this issue was remanded to original authority.
Since no finding was recorded on the issue of invocation of extended period and penalties, the Appellant’s claim that proper disclosures were made in the service tax returns in respect of carriage fees, voice & data circuit fees received, the matter was remanded to the original authority.
