By Express News Service CHENNAI: Madras High Court on Wednesday ordered an interim injunction against the notices issued by the Goods and Services Tax (GST) department commissioner demanding goods and service tax from Music Director AR Rahman for the permanent transfer of copyrights in musical works to the producer of such movies. Justice Anita Sumanth hearing the plea passed the interim order staying the operation of the notice issued by the commissioner of GST and central excise, Chennai on October 17, 2019 till March 4. Rahman in his plea sought that he was the composer of the musical works and becomes the absolute owner of the copyright for the work under the Copyrights Act and subsequent transfer of such rights to producers of the movie are exempted from tax. Rahman in his petition also said, “The very fact that I have assigned the right to producer indicates that I am the owner of the copyright since without owning the right it is not possible to assign the same for consideration. If the producer is already the owner of the right, there is no necessity for an assignment. Further, there would not be any payment of publishing royalty to the composer.” Such permanent transfer of copyright is not a service for levy of service tax. Even temporary transfer or permitting enjoyment of copyright falling under the Copyright Act is exempted from service tax, he added. “In terms of section 13(1)(a) of the Copyright Act, copyright subsists in musical work and the composer is the sole and absolute owner of such right. The said rights are assigned to the producer of movies under agreements executed with the producers which makes them the absolute owner of the copyright,” Rahman said. Moreover, section 65B (44) of the Finance Act, 1994 defines ‘service’ and specifically excludes transfer of title in goods by way of sale, gift or in any other manner, Rahman argued. The show-cause notice also misinterpreted the provisions of the Copyright Act and presumed producer as the first owner of musical works. The notice proposed to deny the exemption legitimately available and granted by the government with a preconceived mindset based on assumptions and presumptions, the composer said.

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