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2016 (5) TMI 1208 - HC - VAT and Sales TaxActivity liable to VAT or service tax - sale of media space for displaying advertisements of its clients - Demand of VAT and imposition of penalty - Section 33 of the DVAT Act - Default assessment under Section 32 - Agreement entered to transfer of the right to use various display sites - Petitioner paying service tax under Finance Act by considering it as services rendered - Held that:- there is a considerable merit in the Petitioner‟s contention that levy of Service Tax and Value Added Tax are mutually exclusive. The question whether the transaction entered into between the Petitioner and its clients can be constituted as a 'sale' within the meaning of Section 2(1)(zc)(vi) ibid is required to be answered keeping in view the principles as reiterated by this Court in the case of Tim Delhi Airport Advertising Pvt. Ltd. v. Special Commissioner –II, Department of Trade & Taxes & Ors. [2016 (5) TMI 297 - DELHI HIGH COURT]. Accordingly, the impugned default assessment orders and notices of penalty are set aside and the matter is remanded to the VATO to consider it afresh in the light of the principles as reiterated in Tim Delhi Airport Advertising Pvt. Ltd. (supra). The penalty orders under Section 86 (14) of the DVAT Act are also set aside. - Petition disposed of
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