2015 (2) TMI 933 - AT - Service Tax

Sale of space of advertisement services - Advertisement in publication KALDARSHIKA - Covered in definition of Book or a business directory yellow page etc. - Held that - As against the factual finding as recorded by the first appellate authority we find hat the revenue has not brought any material which is contrary to the facts as recorded by the first appellate authority. Be that as it may we find that definition of Sale of space for advertisement as relied by the Departmental Representative falling under Section 65(105)(zzzm) would not cover the product published by the appellant as the said publication cannot be considered a calendar but an Almanac which gives reader a host of information in respect of religions cultural and historical events as also the panchang. We agree with the first appellate authority that the appellant s product KALDARSHIKA cannot be termed as a business directory yellow pages or trade catalogue; hence it is to be held as book to be covered under the explanation (2) to the definition of the Sale of Space for advertisement . - Decided against the revenue.

Summary

Issues:
Service tax liability for the period 21.11.2006 to 02.11.2007 for sale of space for advertisement services.

Analysis:
The appeal addressed whether the appellant should be liable for service tax for the period 21.11.2006 to 02.11.2007 for selling space for advertisement services. The Adjudicating authority deemed the appellant liable as they printed and published a calendar with advertisements. However, the first appellate authority overturned this decision, stating the appellant's product was a book. The Revenue appealed to the Tribunal.

The Departmental Representative argued that the publication did not qualify as a book under the Press and Registration of Books Act, relying on specific definitions and exclusions. The Counsel supported the first appellate authority's decision, asserting the product was indeed a book.

Upon reviewing the submissions and records, the Tribunal found that the appellant's publication, KALDARSHIKA, was akin to an Almanac, providing religious, cultural, and historical information alongside advertisements. Citing legal precedents, the Tribunal concluded that the definition of "book" should be interpreted broadly, encompassing various printed materials. The Tribunal agreed with the first appellate authority that KALDARSHIKA did not fit the definition of a business directory, yellow pages, or trade catalog, thus falling under the category of a book for advertisement space sale.

The Tribunal rejected the Revenue's arguments, emphasizing that the appellant's publication qualified as a book under the relevant definition. Consequently, the demand for service tax was deemed unsustainable, and the appeal was dismissed as the impugned order was deemed correct and legally sound.