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Zee Telefilms to appeal against DCCE’s service tax demand

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MUMBAI: Zee Telefilms has announced its intention to file an appeal in the CEGAT (Customs, Excise and Gold (Control) Appellate Tribunal) Tribunal against an order issued by the Deputy Commissioner of Central Excise (Appeals) (DCCE).
The office DCCE (Appeals) had sent a show cause cum demand notice to Zee Telefilms asking to pay an amount of Rs 147.5 million and a penalty of the same amount for suppression of information about its activities from the service tax authorities.
A medianet press release issued by Zee Telefilms (ZTL) claims that the company is the exclusive advertisement collection agent for both Asia Today Limited (ATL) and Expand Fast Holdings Limited (EFHL). Both these companies are wholly owned subsidiaries of ZTL and earn up to 15 per cent commission on advertising revenue collected on the channels operated by these companies, says the release. 
The DCCE (Appeals) has contended that ZTL has acted as an advertising agent and is liable to pay service tax on the above collection commission it received from ATL and EFHL. 
In separate cases, Star India Pvt Ltd and Mukta Arts have been asked to pay Rs 76.6 million and Rs 167.5 million respectively for allegedly the same reasons. Star India will also have to pay a penalty of Rs 76.6 million.
A press note from the service tax cell of the central excise commissionerate IV said these companies had failed to reveal their advertisement revenue, which attracts service tax. The investigations by the cell also revealed that these companies were advertising agencies and had thus provided a service to clients between 1999 and 2001.
The companies had appealed against the adjudication orders. The commissioner (Appeals), by an interim order on 13 August, refused to grant a stay and asked the companies to pay up.
While Star and Zee have been asked to pay another Rs 200 per day as penalties on delayed payment and penalties for failure to obtain registration and filing of returns, Mukta Arts has been penalised with Rs 100 per day.
Meanwhile, the ZTL press release has stated that the contention of DCCE that ZTL is liable to pay service tax on commission it has earned from ATL and EFHL as the exclusive collection agent is not accurate.
The release refers to the fact that till a few years back, the government of India did not allow private satellite channels to be uplinked from India. As a result, broadcasting operations were conducted by companies that were based outside India and channels were uplinked from outside the country. These companies in turn appointed Indian companies as exclusive collection agents for their advertising income.
The release says that ATL and EFHL had appointed ZTL as the exclusive advertisement collection agent for all the channels being broadcast by them. ZTL was earning upto 15 per cent commission for this work. From the gross advertising revenues, EFHL and ATL also settled the 15 per cent commission payable to advertising agencies, for providing advertising services to their clients (advertisers).
The release adds that the services rendered by advertising agencies were brought within the ambit of service tax levy w.e.f. November 1996. Consequently, Government has been collecting 5 per cent service tax from the advertising agencies, on the 15 per cent commission earned by them. Now, says the release, it is the contention of DCCE that the commission earned by ZTL from ATL and EFHL is also liable to service tax, since ZTL also acted as an advertising agent of ATL and EFHL.
The ZTL release says that it is very clear that the service tax was applicable to advertising agencies on the advertising commission earned by them and since ZTL never provided advertising services, nor was an advertising agent, service tax is not applicable.
Referring to the present scenario, ZTL release says it is in the process of filing an appeal in the CEGAT Tribunal against this order, and is confident of proving its case.

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Awards

Hamdard honours changemakers at Abdul Hameed awards

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NEW DELHI: Hamdard Laboratories gathered a cross-section of India’s achievers in New Delhi on Friday, handing out the Hakeem Abdul Hameed Excellence Awards to figures who have left their mark across healthcare, education, sport, public service and the arts.

The ceremony, attended by minister of state for defence Sanjay Seth and senior officials from the ministry of Ayush, celebrated individuals whose work blends professional success with a sense of public purpose. It was as much a roll call of achievement as it was a reminder that influence is not measured only in profits or podiums, but in people reached and lives improved.

Among the headline awardees was Alakh Pandey, founder and chief executive of PhysicsWallah, recognised for turning affordable digital learning into a mass movement. On the sporting front, Arjuna Awardee and kabaddi player Sakshi Puniya was honoured for her contribution to the game and for pushing women’s participation onto bigger stages.

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The cultural spotlight fell on veteran lyricist and poet Santosh Anand, whose songs have echoed across generations of Hindi cinema. At 97, Anand accepted the honour with characteristic humility, reflecting on a life shaped by perseverance and hope.

Healthcare honours spanned both modern and traditional systems. Manoj N. Nesari was recognised for strengthening Ayurveda’s place in national and global health frameworks. Padma shri Mohammed Abdul Waheed was honoured for his research-backed work in Unani medicine, while padma shri Mohsin Wali received recognition for his long-standing contribution to patient-centred care.

Education and social development also featured prominently. Padma shri Zahir Ishaq Kazi was honoured for decades of work in education, while former Meghalaya superintendent of Police T. C. Chacko was recognised for public service. Goonj founder Anshu Gupta received an award for his dignity-centred rural development initiatives, and the Hunar Shakti Foundation was honoured for empowering women and young girls through skill development.

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The Lifetime Achievement Award went to former IAS officer Shailaja Chandra for her long career in public healthcare and governance, particularly in the traditional systems under Ayush.

Speaking at the event, Hamdard chairman Abdul Majeed said the awards were a tribute to those who combine excellence with empathy. “These awardees reflect Hakeem Sahib’s belief that healthcare, education and public service must ultimately serve humanity,” he said.

Minister Seth struck a forward-looking note, saying India’s young population gives the country a unique opportunity to become a global destination for learning, health and wellness by 2047.

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The ceremony also featured the trailer launch of Unani Ki Kahaani, an upcoming documentary starring actor Jim Sarbh, set to premiere on Discovery on 11 February.

Instituted in memory of Unani scholar and educationist Hakeem Abdul Hameed, the awards have grown into a national platform that celebrates those building a more inclusive and resilient India. For one evening at least, the spotlight was not just on success, but on service with substance.

 

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