- (1.) The appellant does not press these appeals. The appeals are accordingly, dismissed for non-prosecution. CAs Nos. 5399 and 5400 of 2004
(2.) The appellant is a company incorporated under the Companies Act, 1956 and carries on business in India. It is the agent of M/s Satellite television Asian Region Limited, Hong Kong (referred to as "star", Hong kong). The business of STAR is to telecast channels from satellites situated outside India. Some of the channels are available and enjoyed by customers in India. According to the appellant, it does no broadcasting but merely sells time-slots for advertisement and obtains sponsors for serials, programmes or live events, etc. Thus, when the service of broadcasting was introduced in the finance Act, 1994 as a taxable service, with effect from 16-7-2001 by the finance Act, 2001, the appellant disputed its liability to make any payment of service tax on the ground that it did not, in fact, broadcast.
(3.) The Commissioner, however, held against the appellant. The appellant appealed before the Commissioner (Appeals). While the appeal was pending, the Finance Act, 2001 was amended by the Finance Act, 2002. The effect of the amendment inter alia was to make an agent, such as the appellant, liable to pay service tax as broadcaster. A validation section was introduced, in the finance Act, 2002 which reads as follows: "148.(2) Any action taken or anything done or omitted to be done or purported to have been taken or done or omitted to be done under this chapter at any time during the period commencing on and from the 16th day of July, 2001 and ending with the day, on which the Finance Bill, 2002 receives the assent of the President, shall be deemed to be and always to have been, for all purposes, as validly and effectively taken or done or omitted to be done as if sub-section (1) had been in force at all material times and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, recovery shall be made of all such service tax which have not been collected but which would have been collected, if sub-section (1) had been in force at all material times, within a period of thirty days from the date on which the finance Bill, 2002 receives the assent of the President, and in the event of non-payment of such service tax so recoverable, interest at the rate of fifteen per cent per annum shall be payable, from the date immediately after the expiry of the said period of thirty days, till the date of payment. ";