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2023 (9) TMI 20 - AT - Service TaxLevy of Service Tax - volume discounts/incentives received from the Media owners at the end of the financial year - HELD THAT:- Service Tax has been discharged on the basis of invoice raised by the media house by the clients/ advertisers on the entire consideration amount and against service commission received by the Respondent from the advertisers, service tax was also discharged but because of large volume of advertisement was facilitated by the Respondent, as a token of gesture/gratitude, media house passed on certain discount/incentives to the Respondent against which Service Tax was already discharged by themselves. Therefore, the said incentive can’t be equated with consideration to the activities carried out by the Respondent for the reason that Respondent had not promoted or canvased in placing of advertisement by its client on any specific media house and the choice of media house nested with the clients, for which it can’t be considered as any kind of activity against which incentive/discount was received by the Appellant as a consideration, apart from the fact that against placing the order of its client in the print or broadcasting both media house as well as Respondent had discharge their Service Tax liabilities. The only ground on which the Review order is based is on the decision of the CESTAT passed in the case of BBC World (India) Pvt. Ltd. Vs. Commissioner of Service Tax way back in 2009 that is far before introduction of comprehensive taxation scheme in 2012 and that will have so application to the present issue for the reason that for the period pre 2012, the issue had been settled by this Tribunal in several decisions including in Respondent’s own case for two different periods and for the period post 2012, even though advanced ruling of the AAR is not a binding precedent and binds only intra parties. Appeal dismissed.
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