The Chennai Bench of the Customs Excise and Service Tax Appellate Tribunal ( CESTAT ) held that no service tax on commission received from the Sun Direct TV Private Limited for installing the dish antenna and TV connections.
The Appellant MCC TV is engaged in providing Dish Antenna connection to customers. M/s. Sun Direct TV Private Limited, Chennai provided Dish Antenna and appellant installed the same at customers premises. The appellant also carried out the activity of activating such dish antennas as per the scheme of M/s. Sun Direct TV Pvt Ltd.
During the course of audit of accounts of the appellant it was noted that the appellant received commission for the period 2007 – 2008 to 2010 – 2011 from M/s. Sun Direct TV Private Limited, they had not discharged service tax on the commission received by them.
Accordingly, Show cause notice was issued for the period 2007-2008 to 2010 – 2011 proposing to demand the service tax under the ‘Business Auxiliary Service’ along with interest and for imposing penalties. After due process of law, the original authority confirmed the service tax, interest and imposed penalties.
Aggrieved by the order the appellant filed an appeal before the Commissioner(Appeals) who upheld the order . Hence the appellant filed another appeal before the tribunal
M.N. Bharathi, Counsel for appellant submitted that the appellant carried out the activity of installing dish antenna and activating the TV connections at the customers premises. For such activity they received dish antennas and necessary materials from M/s. Sun Direct TV Private Limited.
Further Sun Direct TV Private Limited had already paid service tax on such amounts paid by customers. The amount is inclusive of service tax and the appellant does not receive any amount from the customer while carrying out the activity of installation and activation of TV connection..
Harendra Singh Pal, Counsel for the department submitted that demand has been confirmed for the reason that the appellant did not adduce evidence that the commission accounted in their ledgers have suffered service tax.
A Two-Member Bench comprising Sulekha Beevi ( Judicial Member ) and Vasa Seshagiri Rao (Technical Member) held that no service tax on commission received from the Sun Direct TV Private Limited for installing the dish antenna and TV connections.
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