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2017 (8) TMI 1117 - CESTAT CHENNAIAdvertisement Agency Service - the appellant rents the space for display of advertisement at various places of the theatre complex in the form of hoardings, neon signs, cinema tickets etc - department was of the view that the activities undertaken by the appellant would fall under the category of Advertisement Agency Service and that were liable to pay service tax - sale of space or advertisement - Held that: - what is being taxed is planning and expertise involved in making, preparing display or exhibiting the advertisement and not simply providing of a place or space to the advertiser. The expression display or exhibit does not mean the physical act of display and exhibit, but relates to the services rendered, as an expert body, to the client, for the purposes of display or exhibit. The same may involve the expertise of the provider of the services to advise the client as to in which manner, the advertisement should be displayed i.e. whether in the newspaper or on TV channel or by way of hoardings or a audio/video advertisement in air or any other medium or at what point of time the same should be exhibited. No such expert services are being provided by the appellant in the present case. They are merely canvassing their clients to make utilize of the space available with them for the purposes of advertisement of their product during the course of matches, which are going to be telecasted and by which they can popularize their products. As such, the activities amount to sale of space and not as regards advertisement. The Board vide Circular No. 78/8/2004-ST dated 23.3.2004 has clarified that in case of free commercial time, selling the time allotted does not fall within the purview of Advertisement Service since the said activity is not connected to making, preparation, display or exhibition of advertisement. The Board clarified that such activity will be covered only under Space Selling and not under Advertising Agency - appeal allowed - decided in favor of appellant.
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