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2017 (7) TMI 600 - AT - Service TaxSale of space for advertisement service - Department is seeking to levy service tax on the amounts collected by appellant as advertisement tax - Held that: - It is a cardinal principle of taxation that there should not be any tax on tax - In respect of service tax liability demanded by the Department on alleged sale of space or time for advertisement service, we find that in the Gazette Notification published by the Municipal Corporation, Rajahmundry the rate of tax within the municipal limits has been indicated. We further find that the Section 197 (1f) of the Greater Hyderabad Municipal Corporation Act, 1955, authorising municipal taxation on advertisements has been adopted in respect of the municipal corporations in Andhra Pradesh. In respect of the municipalities, they are authorised to collect the said tax vide Section 114 of the Andhra Pradesh Municipalities Act, 1965 This activity of the appellant is certainly not selling of space or time for advertisement as alleged by the show-cause notice and confirmed / upheld by the lower authorities. Appellants then cannot be subjected to tax on this score. Appeal allowed - decided in favor of appellant.
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