KRISHANA SATELLITE CABLE NETWORK Vs. CCE

JUDGEMENT

(1.) HEARD both sides. Appellant filed this appeal against the impugned order, whereby demand of service tax was confirmed on the ground that appellants are providing cable operator service and penalties were imposed.

(2.) THE contention of appellant is that the demand is for the period 16/08/02 to 31/03/04. The service tax in respect of cable operator was imposed w.e.f. 16/08/02. The contention is that being a new levy appellant was under the impression that they were not liable to pay service tax as appellant were receiving signals from multi -system operator and further providing the signals to their customers. The contention is that as applicant was not receiving any signals directly from the satellite, therefore, he is not providing any service as a cable operator.

(3.) CONTENTION of revenue is that as per the definition of cable operator under the Finance Act, any person who provides cable services through a Cable Television Network or otherwise controls or is responsible for the management and operation of a cable television networks and cable service includes the transmission by cable of programmes including retransmission by cables of any broadcast television networks. In view of this, the appellant are providing service as cable operator and liable for service tax. In respect of penalties the contention is that as appellant have not complied with the provision of Finance Act nor got registered as a service tax provider, therefore, liable to penalty.