DIRECTORATE GENERAL OF GOODS & SERVICE TAX

INTELLIGENCE, REGIONAL UNIT- GANDHIDHAM.

Plot No. 69, Ward -10A, Opposite- IFFCO Gate, Gandhidham,
Gujarat-370201
Phone No. 02836-258125-28 Email Id:- dggigru1@gmail.com

F.No. DGGI/GRU/ 12(2)-06/19-20 Dated: 14.11.2019

To,

The Superintendent Engineer (Estate),

Deendayal Port Trust,
Administrative office Building,
Sector 8, Gandhidham,
Gujarat - 370201

Sir,

Subject: Inquiry regarding location of address-reg.

This office is inquiring a case against a firm / person who have

provided address at B/h Plot No. 31A, Floor No. 0, Sector 10A, GIDC,
Gandhidham. But the said address is not locatable by this office.

It is therefore requested to kindly verify from your records whether

any such address exists in Sector 10A, GIDC, Gandhidham or otherwise.

Yours faithfully,

(Rajesh Kumar Ohlan)

Addl. Assistant Director,
DGGI-GRU, Gandhidham
Submitted Please:-

Kindly peruse the letter F.No. DGCEI/AZU/12(2)-16/2018-19 dated

06.09.2018 issued by the Assistant Director, Ahmedabad Zonal Unit,
Ahmedabad along with enclosures letter F.No.160/INt/DGGSTI/Hqrs/2014
dated 17.07.2018 and Incident Report No. 22/ST/2017-18 in case of M/s
Fastway Transmission Pvt. Ltd., placed in file.

Vide said letter, AZU has directed this office to initiate necessary
inquiry in respect of the following assesses/unit on the basis of the
aforesaid IR:-

Sl.No. Name of Multi System Operator Address for Correspondence

1. KAchchh Digital Network F-3 Jadiya Society,
Swaminarayan Nagar, Junavas,
Madhapar, Bhuj, Kuchchh-
370020
2. Mandvi Dish Antenna Kansara Bazaar Mandvi Kutch

The Gist of the Incident Report:-

M/s. Fastway Transmission Private Ltd. (FTPL) is holding Service Tax

registration and also registered as a multi system operator (MSO) with the
Ministry of Information and Broadcasting (MIB) under Section 4 of the
Cable Television Networks (regulation) Act, 1995 read with rule 11C of the
Cable TV Networks Rules, 1994 which were brought under service tax net
w.e.f. 10.09.2004. On the basis of the Intelligence that FTPL were not
discharging service tax liability, investigation was initiated against it:

In 2011 Government decided to mandatorily introduce DAS (Digitally

Addressable System). FTPL voluntarily started implementing DAS even
before the year 2010 without waiting for statutory mandating of DAS
system. As a result, FTPL were simultaneous provider of both analog and
digital services to different subscribers.

In DAS/CAS, the channels sent through cable TV network in digital

and encrypted form can be received by authorized user using STB
programmed by MSO from his subscriber Management system. In this
system the subscriber has to approach MSO for receiving cable services
either directly or through his linked LCOs for which he will fill up a
subscriber application form(SAF). MSO in term will install STB at
subscriber’s premises and operationalise the STB through SMS.

In view of the above, following discrepancies were notices;

I) It was found that FTPL has formed joint venture/associate

subsidiary companies by association of FTPL and Local Cable
 Operators of respective operational area. Usually FTPL has
taken over the existing business of LCO’s and formed jV
companies with such LCOS. The JV Company did not possess
any cable TV infrastructure and even in respect of subscriber
claimed to be belonging to JV Company, the contract to provide
service to subscribers was between FTPL and subscribers. For
using Infrastructure of FTPL, JV Companies were paying
various charges to FTPL. Accordingly, scrutiny of records
submitted by the FTPL reveals that during the period 2010 to
March 2017 they failed to pay the certain amount of Service
Tax.
II) The Examination of the SMS revealed that FTPL were also
providing cable TV service in the state of Jammu & Kashmir
during the year 2016-17 and collected certain amount of Service
Tax representing as service tax. Since Finance Act, 1994 is not
applicable, said amount is credit of Government as per Section
73 a(2) of the Finance Act, 1994 along with interest under
section 73B of the F.A. 1994.
III) Further FTPL had been availing input credit on Input services
and also taking credit of additional duty (CVD) paid by them
under section 3 of the Customs Tariff Act, 1975 on imported
STBs/Remote Units by treating them as capital goods in terms
of rule 3 of the Cenvat Credit Rules, 2004. In terms of
Telecommunication (Broadcasting and cable) Services (fifth)
(Digital Addressable Cable TV systems) Tariff Order, 2013 dated
27.05.2013, it is mandatory for a MSO to offer only standard
tariff packages specified in the schedule for supply and
installation of the STB. In all optional standard tariff packages
serial no.1 prescribes the amount of rent per month per st top
box for first three years. Serial no.3 specifies the amount and
nature of security deposit whether adjustable or refundable. Sr.
No. 2 specifies that amount of rent after three from the date of
installation, which is nil and it states that “No rent”. The set top
box shall become the property of the subscriber except
smartcard/viewing card. Accordingly, FTPL treats STB as
having become property of subscriber and physically too STB
stands permanently removed from the premises of the service
provider and hence, FTPL was liable to pay an amount of cenvat
credit taken on capital goods ( STB/Remots)reduced by such
percentage points as provided under Rule 3(5) (b) of CCR ,
2004.
In view of the above, the file is put up for your kind perusal and further
necessary directions/orders in this matter please
Verification of the above provided documents is as under:-
1. M/s Ashok & Co. Pan Bahar Ltd., has a valid GSIN i.e.
2424AAFCA4393L1ZG with registered address “Ground Floor, Unit
No. 101, Ganga Complex Phase-II, KSE Zone, Gandhidham Kutch,
Gujarat, which was issued on 19/09/2017.
2. The party has provided ST-2 with Registration No.
AAFCA4193LSD005.
3. The party has submitted the ST-3 for F.Y. 2014-15, 2015-16,
2016-17.
4. The Party has submitted the Certificate of Registration under the
Gujarat Value Added Tax Act, 2003 with Registration No.
24011006749.
5. The party has submitted certificate of Registration No.
24511006749 under Section 7 (1)/7(2) of the Central Sales Tax
Act, 1956 of Gujarat Commercial Tax.
6. LOA (Letter of Approval) No. 003/2013-14 bearing F.No.
KASEZ/LA/003/2013-14 dated 03.06.2013 issued by the Joint
Development Commissioner, Kandla Special Economic Zone,
submitted by the party states that they have undertaken
authorized operations, namely, Manufacturing Activities as under:-

Authorised Operation:- Projected FOB Value of Export

Manufacturing Activity of Pan for 5 years: Rs. 23100.00 Lacs
Masala ( ITC HS 21069020) and
Pan Masal Containing Tobacco
(ITC HS 24039990)

The above said approval is subject to the terms & conditions as

mentioned in letter may please be seen. Of which Para no. 5 states
that “No DTA sale of goods manufactured shall be permissible”.
The party has submitted filed GSTR-1 and GSTR-3B from 01.07.2017 to
31.12.2018