TMI Blog2017 (8) TMI 1117X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities undertaken by the appellant would fall under the category of 'Advertisement Agency Service' and that were liable to pay service tax for the said services for the period from 2001-2007 (upto 30.4.2006). A show cause notice dated 22.2.2007 was issued alleging the above and proposing to demand service tax along with interest and for imposing penalty. After due process of law, the original authority confirmed the demand along with interest and imposed penalties. Hence this appeal. 2. On behalf of the appellant, learned counsel Shri Raghavan Ramabhadra submitted that the appellant merely enables the display of the advertisements given by various customers and at no point of time is the appellant engaged in developing the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contend that they are not engaged in designing or developing the content of the advertisement. Their activity is allotting time slot and space within the theatre complex without any creative inputs for making or preparing advertisements. For better appreciation, the definition of 'Advertising Agency' is reproduced as under:- 65(3) 'advertising agency' means any person engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant 7. The department has issued the show cause notice merely relying on the words providing any service connected with display or exhibition used in the definition. The very same issue has been conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drafted and exhibited has got nothing to do with the press media or electronic media. That would be the task of 'advertising agency' alone. Therefore, when we consider the situation where a client goes to the press media and asks for flashing of the advertisement and such advertisement is flashed in the media, this cannot be deemed to be a service provided by that media to such a client. Similarly, when a person approaches the electronic media and flashes an advertisement on the radio or television, as the case may be, the ratio or television simply would flash the advertisement as per instructions of the person concerned but such person will not get the advantage of the expertise of the advertising agency. Therefore, it cannot be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hip services stands created for the purposes of service tax w.e.f. 1-5-06. However, the taxable services in relation to sponsorship services specifically excluded sponsorship of sport events. As such, we find that a subsequent entry having been enacted covering the activity without any change of the existing entry, has to be interpreted as if the earlier existing entry did not cover the subsequently created entry. If the subsequent entry was covered by the earlier entry, there was no reason or scope to create the present entry especially when the rate of tax in respect of both the entries remains unchanged. Certainly, creation of new entries was not by way of bifurcation of the earlier entry inasmuch as the earlier entry relating to advert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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