Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 768 - CESTAT NEW DELHICenvat Credit - input services - services obtained through agents - advertising service was received by the appellant directly from the provider thereof i.e. 94.3 FM for advertising its center - Commercial Training and Coaching Service is provided by the appellant - Circular No. 96/7/2007 dated 23.08.2007 - Held that:- The invoices are issued by the advertising agencies but on the appellant. The amount as charged by these agencies in the invoices is the amount charged for advertising in the print media plus amount towards service charges as advertising agency (85% + 15%). On the said 15% amount, service tax is charged by the advertising agency which is paid by the appellant. Thus the invoice itself is sufficient to prove that it is the appellant who is the service recipient qua the advertising services though the services have been received from the provider thereof by the appellant after engaging an agency for the purpose. Agencies by the definition itself are the organisation working on behalf of their client. It is the said agency which has received service in the form of business auxiliary service, an exempted service and not the appellant. Thus, it is wrongly observed by Commissioner (Appeals) that appellant has availed credit of exempted service (BAS). It is rather apparent from facts that for booking an advertisement with print media though through an agency on behalf of the appellant, it is the appellant only who is recipient for the advertising service received to promote his coaching centre i.e. to provide the output service of CTCS. Thus, the payment made by the appellant for the purpose definitely becomes an input for him for providing a Commercial Coaching and Training Service. The finding of the Commissioner Appeals for holding that impugned services are Business Auxiliary Service which are not taxable hence not eligible for taking audit is held to be an erroneous - appeal allowed - decided in favor of appellant.
|