MUMBAI: The Madras High Court has restrained Tamil Nadu Cinema Theatre Owners Federation (TNCTOF) and Tamil Nadu Film Exhibitors‘ Association (TNFEA) from deducting service tax from the distributors’ share of income by following a recent circular of the Central Board of Excise and Customs(CBEC).

Granting the interim injunction on a petition filed by city-based Mediaone Global Entertainment Limited, Justice M Jaichandren issued notice to authorities concerned and Tamil Nadu Cinema Theater Owners Federation and Tamil Nadu Film Exhibitor‘s Association.

The firm, carrying on business by producing and distributing films, said that it was aggrieved by the circular of the Under Secretary, (Tax Research Unit), Central Board of Excise and Customs, New Delhi, with respect to levy of Service Tax on distributors/sub-distributors of films and exhibitors of movies.

The petitioner claimed that the official without jurisdiction had completely bypassed earlier circulars of the Chief Commissioner of Central Excise, Chennai, and a circular of February 2009.