SAI STAR DISTRIBUTORS Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THE appellants are in appeal against the impugned order.

(2.) They have also filed a miscellaneous application for producing additional evidence on record. The brief facts of the case are that the appellants namely M/s. Sai Star Distributors were operating as Multi Service Operator (MSO) in TV cable operation business as a commission agent and distributor of M/s. Win Cable & Datacom Pvt. Ltd. by retransmitting TV Signals to various cable subscribers. For these services, they were earning commission from the signal supplier on which they were not paying the service tax. As the activity undertaken by the appellants falls under the category of 'Cable Operators Service', a show -cause notice was issued for recovery of service tax and also for commission received from their signal supplier under the category of 'Business Auxiliary Service'. There was also a proposal to demand of service tax on 'Renting of Immovable Property Service' against the appellants. The show -cause notice was adjudicated and all the demands were confirmed. Being aggrieved with the order, the appellants are before us.

(3.) THE learned Consultant for the appellants submits that the appellants are not aware of the fact that they are providing taxable service, therefore they did not discharge service tax liability. They are getting signal for retransmission from M/s. Win Cable and M/s. Datacom Pvt. Ltd. and were paying the charges for the same along with service tax to them. The learned Consultant further submits that the payment of service tax was not paid to the Government only because they paid the service tax to the signal supplier. If the services of signal received by them is considered as 'input service', in that situation, their tax liability will be nil. In support of this contention, he filed a miscellaneous application for producing additional evidence on record.