2025-VIL-1102-CESTAT-CHD-ST
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SERVICE TAX CESTAT Cases

Service Tax - Cable operator services, Extended period – Demand of service tax on various receipts including lease pay holder receipts, infrastructure provider receipts, channel placement and carriage receipts, and installation and repair and maintenance charges - Whether service tax can be charged on lease pay holder receipts under cable operator services - HELD - As per the Cable Television Networks (Regulation) Act, 1995, cable service means the transmission by cables of programmes including re-transmission by cables of any broadcast television signals. The lease pay holder receipts are not for the transmission of signals but for not expanding the business in the area where small operators are operating. Therefore, the lease pay holder receipts are not taxable under cable operator services - Service tax cannot be charged on lease pay holder receipts under cable operator services - Department cannot invoke extended period in the subsequent show cause notices when it failed to take cognizance of some issues in the earlier audit - the invocation of the extended period of limitation is set aside and matter is remanded for demand pertaining to the normal period, the Original Authority to decide the taxability of the various receipts by the Appellants considering their submissions and the evolved jurisprudence – The appeal is partly allowed - Whether service tax can be charged on channel placement and carriage receipts under cable operator services or Business Auxiliary Services - HELD - The channel placement and carriage receipts are correctly classifiable under Business Auxiliary Services and not under cable operator services. The income from channel placement and carriage receipts is not for telecasting the channels but for providing maximum reach and viewership to the channels by placing them at the desired frequencies. This service of enhancing the channel's viewership is a Business Auxiliary Service - Whether service tax can be charged on infrastructure provider receipts under telecommunication services - HELD - Service tax cannot be charged on infrastructure provider receipts under telecommunication services. The appellant receives infrastructure provider receipts for leasing optical fibres to telecom and other companies. In this transaction, there is no transmission of signals, video, sound or any other data from the end of the Appellant. The companies are free to transmit their own data on the leased cables. Therefore, the demand of service tax on infrastructure receipt services cannot be made under telecommunication services - Whether the Appellant is entitled to CENVAT credit on the inputs and input services utilized for providing the output services - HELD - The issue of CENVAT credit requires to be decided by the Original Authority after duly verifying the invoices or other documentary proof that may be submitted by the Appellants. The Appellants claimed they are in possession of the requisite invoices and documents to prove their eligibility for CENVAT credit.
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