No Service Tax Leviable for providing ‘BAS’ by Cable TV Operator when Main Operator discharges Entire Service Tax Liability: CESTAT [Read Order]

The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that no service tax was leviable for providing Business Auxiliary Service (BAS) by the cable tv operator when the main cable operator discharged all the service tax liability. 

Prime Cyber, the appellant assessee one of the cable tv operators providing business auxiliary services, and the assessee appealed against the order passed by the Commissioner (Appeals) to confirm the demand for service tax and imposition of penalty. 

During the hearing of this appeal none appeared on behalf of the assessee and Ravinder Jangu appeared on behalf of the department. 

The counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was liable to pay the demand of service tax for providing business auxiliary service. 

The Bench observed that the imposition of penalty under Section 76 and Section 78 of the Finance Act,1994 separately was mutually exclusive after the amendment. 

Also stated that the assessee being a small operator had no wherewithal to keep track of the law and thus, the applicability of the Service Tax to him, more so looking into the fact that the main cable operator had discharged Service Tax on the entire amount collected from the customers. 

Further observed that there are reasons to believe that there were sufficient reasons for the assessee not discharging the applicable Service Tax. 

The two-member bench comprising S.S Garg (Judicial) and Anjani Kumar (Technical) held that the penalties imposed are not sustainable while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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