𝗖𝗘𝗦𝗧𝗔𝗧 𝗠𝘂𝗺𝗯𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗧𝗕 𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿 𝗮𝗻𝗱 𝗩𝗔𝗧 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "The supply of Set-Top Boxes (STBs) to subscribers does not constitute a service under ‘broadcasting’ or ‘STGU’ for service tax purposes, as it qualifies as a deemed sale. Consequently, VAT, not service tax, is applicable."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s Dish TV India Ltd 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: Provision of STBs to customers on a rental basis to facilitate DTH services. 𝗜𝘀𝘀𝘂𝗲: Whether the transfer of STBs to subscribers is subject to service tax.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that STBs are provided as equipment for receiving signals, and this provision is a standalone activity unrelated to broadcasting services. Since subscribers have control over STBs under rental terms, the transaction constitutes a deemed sale and is subject to VAT, not service tax. The appellant had duly discharged VAT, as confirmed by local VAT authorities.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼: 𝗧𝗶𝘁𝗹𝗲: M/s Dish TV India Ltd vs Commissioner of Central Excise & Service Tax, Aurangabad 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 86958 of 2017 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 24 July 2023 📜 This ruling clarifies that STB provisions by DTH providers are not part of taxable broadcasting services.