RADIOWANI Vs. COMMR. OF SERVICE TAX, MUMBAI-I

JUDGEMENT

(1.) THE appeal and stay petition are directed against Order -in -Original No. 77/02/V/2014/Commr/ANS, dated 5 -3 -2014 passed by Commissioner of Service Tax -I, Mumbai. Vide the impugned order, the adjudicating authority has confirmed a Service Tax demand of Rs. 1,00,58,679/ - along with interest thereon and imposed equal amount of penalty under Section 78 of the Finance Act, 1994 on the appellant M/s. Radiowani. Aggrieved of the same the appellant is before us.

(2.) THE learned consultant for the appellant submits that the activities undertaken by the appellant include writing of scripts by engaging freelance writers, getting suitable voices, approved for the purpose of recording, recording voices with artists and writers, providing background music, if necessary, and recording the programme in their studio. These programmes are mainly for the purpose of advertising such as advertisement jingles. The said activities do not fall within the definition of sound recording as defined in the statute wherein sound recording has been defined as "recording of sound on any media or device including magnetic storage device, and includes services relating to recording of sound in any manner such as sound cataloging storing of sound and mixing or remixing or any audio post -production activity" and sound recording studio or agency means "any person engaged in the business of rendering any service relating to sound recording". In the present case, the appellant has undertaken the activity of producing the entire advertising jingle by writing the script, getting artists for recording of voice, providing background music and also recording the advertising jingle. Therefore, it is not a mere activity of recording of sound by sound recording studio or agency. Since the activities have been rendered in the capacity of a sub -contractor for an advertising agency, it is the submission of the learned consultant that, if at all, the activity would visit classification as advertising agency service and therefore, the demand is not sustainable in law. Accordingly he prays for grant of stay and waiver.