TMI Blog2002 (1) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner purchases the cloth required for the banner as per the requirements of the customer, and then prints the matter given by the customer on the banner. After completing the printing work, the material is returned to the customer. The petitioner claims that it has no idea how the matter is utilised by the customer, that the work undertaken by the petitioner is similar to that of a printing press, and it is not acting as an advertising agency for its customers. 3. Service tax was introduced for the first time by the Finance Act, 1994, on certain categories of service. By the Finance (No. 2) Act of 1996, it was extended to the taxable service of advertising agency . Section 65(1)(A) defines advertising agency and Section 65(16)(d) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erit. A fiscal statute cannot be considered to be violative of the fundamental right guaranteed under Article 19(1)(g) to carry on any profession, occupation, trade or business. By Clause (6) of Article 19, it is open to the State to make a law imposing reasonable restriction in the exercise of such right, inter alia, in public interest. It cannot be denied that imposition of tax which goes to the public exchequer is certainly in public interest. The tax levied is only five per cent of the gross consideration received and, hence, it cannot be considered to be unreasonable. We are, therefore, of the view that, there is no substance in the contention that the petitioner's fundamental right guaranteed under Article 19(1)(g) of the Constitu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... boxes, vehicle tyre, stepney covers, P.V.C. balloons, display stands, cinema slides, P.V.C. danglers, all intended for the purpose of advertisement. The materials required for the work are purchased by the petitioner in its name after payment of sales tax, designed, cut to size and supplied to the customers. The petitioner collects designing charges also in some cases from the customers. In these circumstances, the respondents submit that the contention of the petitioner that the materials used for printing are supplied by the client is not correct, as the records disclose otherwise. The respondents, therefore, maintain that the business activity carried on by the petitioner is fully covered by the definition of advertising agency under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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