Fact: M/s. Prasad Corporation Ltd. (“the appellant”) was engaged in post-production services and provided specialized data processing services to customers according to their specifications. It was also engaged in rendering services like creation of special effects, improving the quality of picture or image and converts the digital image file to film, etc. For carrying out such work, it received inputs through digital data or digital image files from its respective foreign customers in back-up tape formats.
Held: The Hon’ble CESTAT of Mumbai Bench vide its Final Order nos. 43119-43121 of 2018 dated December 17, 2019 stated that the services performed by the appellant definitely do not involve his recording of any programme, event or function. The activities of services of Computer Graphics, Digital Restoration, and Reverse Telecine all involving activities on old feature films is definitely a post-production film activity inter alia, rendered for service recipients abroad as per their requirements. Therefore, the services provided by the appellants will certainly not fall under the ambit of “Video Tape Production Services”. The impugned order cannot then sustain and will have to be set aside.
Citation:  101 taxmann.com 460 (Chennai – CESTAT)