2026-VIL-230-CESTAT-CHE-ST
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SERVICE TAX CESTAT Cases

Service Tax - Copyright Assignment as Goods vs. Service Tax – Receipt of payments from broadcasters for recorded commercial productions of which the appellant is the copyright owner - Department alleged that this activity of production on behalf of others and assigning of copyright of programmes produced by the appellant to the broadcasters amounted to 'Sale of Programmes' which is a taxable service covered under 'TV or Radio Programme Producer Service' - Whether the assignment of copyright of television programs produced by the appellant to broadcasters amounted to a 'sale of goods' liable to VAT or a 'service' liable to Service Tax – HELD - The appellant produced the television programs on its own, without any involvement of the broadcasters. In such a situation, the activity would not attract Service Tax as the very concept of rendering of "service" implies two entities, one who renders the "service", and the other, who is the recipient thereof - Copyrights are intangible property without a physical existence, and an intangible activity need not necessarily mean it is a service. The assignment of copyright in the television programs by the appellant to the broadcasters was in the nature of a 'sale of goods' liable to VAT, and not a 'service' liable to Service Tax. The payment of service tax and VAT are mutually exclusive, and if sale of goods is involved and VAT has been paid correctly, the activity would be outside the preview of Service Tax - The transfer of copyright in these programs to the broadcasters do not constitute a 'service' under the definition of 'TV or Radio Programme Production Service' in the Finance Act, 1994 - The demand for Service Tax, interest, and penalty are set aside and the appeal is allowed
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