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2011 (11) TMI 297 - CESTAT, MUMBAIAdvertising Agency Service – assesee pay the bills of advertisers and subsequently recover the same from the customers while raising the bills along with its commission - service tax paid on commission received – Revenue contending levy of service tax on gross amount charged from clients – Held that:- Rule 5 of the Service Tax (Determination of Value) Rules, 2006 states that where any expenditure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall be treated as consideration for the taxable service provided and shall be included in the value for the purpose of charging service tax on the said service. In instant case from the agreement between agency & its clients it does not come out clearly that the agency is working as a pure agent of the client. Therefore, service tax would be levied on the gross amount charged from clients. Further, appellant under the CENVAT Credit Rules is entitled to avail such credit of the service tax paid on input service used in or in relation to the provision of the output service. Therefore, the matter has to be remanded back to the original authority for quantification of the service tax demand after taking into account the input/input service tax credit that the appellant will be eligible to take in respect of the output service rendered.
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