C.N.B. Nair, Member (T) ORDER
K.K. Usha, J. (President)
1. The appellant-assessees who are held liable to pay service tax challenge the orders passed by the Commissioner of Central Excise (Appeals) Mumbai dated 18.11.2002 rejecting their appeals against the orders of adjudication. Since both the appellants raised a common contention that their activities cannot be termed as 'taxable service' as defined under section 65(72), as it stood during the relevant period, the appeals are disposed off by a common order. According to them they are not providing any service to a client as a broadcasting agency or organization in relation to broadcasting in India. Therefore, the demand of service tax is not sustainable.
2. M/s Zee Telefilms Ltd., appellant in ST/4/2003, are representatives of M/s. Asia Today Ltd. (ATL) and M/s. Expand Fast Holdings Ltd. (EXPAND), Mauritius, in India for selling time slot for advertisement and for obtaining sponsors for serials, programmes, events, etc. which would be played out by ATL/EXPAND in the various channels like Zee TV, ZEE CINEMA, MUSIC ASIA. Appellant in ST/5/2003 are representative of M/s. Satellite Television Region Limited (STAR) Hong Kong in India for selling time slot for advertisement and for obtaining sponsors in India for selling time slot for advertisement and for obtaining sponsor for serials, programmes, events, etc. which would be telecast by STAR in various channels like STAR PLUS, STAR NEWS, STAR WORLD etc. It is the case of the appellants that their programmes are telecast from satellite situated outside India. The signals are encrypted and beamed from outside India. These signals are received by the Multi System Operators (MSO) and Cable TV operators through decoders. These decoders enable MSOs and Cable TV operators to re-transmit the signals to the viewers subscribing them. The signals that are broadcast may be of advertisements, serials, programmes or live events. The advertisements recorded in videotapes by the advertising agencies and program/serials recorded in the videotapes by or on behalf of the sponsor are procured from advertisement agencies in India and sponsors and sent to ATL/EXPAND, Mauritius in the case of the appellant in ST/4/2003 and to Star Ltd., Hong Kong in the case of appellant in ST/5/2003.
3. M/s. Zee Telefilms submits that they are engaged in collecting money due to ATL/EXPAND from its clients in India and the same is remitted to ATL/Expand after deducting its commission. So also M/s. Star India Pvt. Ltd. collects amounts due to STAR from clients in India and remit the same to STAR and get a commission paid for its activity of broadcasting and that broadcasting done by ATL/EXPAND and STAR are from outside India and therefore no service tax can be demanded from the appellants as agents of broadcasting agency or organisation.
4. A show cause notice dated 7.12.2001 was issued to M/s.Zee Telefilms Ltd. proposing to levy service tax for the reason -
(a) ATL/EXPAND is engaged in the business of broadcasting services in India since ATL/EXPAND telecasts channels like ZEE TV, ZEE CINEMA, MUSIC ASIA, etc.;
(b) Since Zee Telefilms Ltd. are appointed as a non-exclusive independent representatives in India by ATL/EXPAND they are rendering service of broadcasting in the capacity of broadcasting agency/organisation in identifying the clients wanting to broadcast advertisements for obtaining sponsors for serials/programmers, events, live events, etc. for broadcasting on foreign TV channels in India; and
(c) Zee telefilms are rendering services in relation to broadcasting in India and broadcasting services rendered by them would come within the ambit of ser........