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2023 (9) TMI 929 - AT - Service TaxEligibility of 85% abatement - advertising agency - revenue is of the view that the assessee is availing 85% exemption on the value of taxable service from payment of service tax without any authority of law during the impugned period and also not incorporated the entire value of taxable service in their ST-3 return as detected from their profit and loss accounts, resulting in non-payment of service tax - HELD THAT:- The facts of the case are not in dispute that the assessee is advertising agency and providing service in relation to the advertisement for print media and paying service tax on 15% of the total amount of commission received by them. The said issue has been decided by this Tribunal in the case of DRISHTY COMMUNICATION PRIVATE LIMITED VERSUS C.C.E. & S.T. -RAJKOT [2023 (1) TMI 297 - CESTAT AHMEDABAD], wherein the Tribunal observed that It is seen that no evidence has been placed from record to establish that the appellant were providing “Advertising Agency Services.” The role of appellant was limited to being an intermediary in the sale of space/ time for media agency on commission basis. In terms of Notification No.1/96-ST, the assessee is not liable to be included the amount paid for space and time in getting the advertisement published in print media. Therefore, the said amount is not includible in the value of taxable service provided by the assessee. Further, on discount received by the appellant, no service tax is payable as the same has not been received in consideration of providing the taxable service by the appellant. It was further found that the advertisers themselves have paid service tax on behalf of the appellant, therefore, if the same is demanded from the assessee, it would be double taxation on the service - As in the case in hand, the service tax has been paid by the advertisers on behalf of the appellant, therefore, same is treated as paid by the appellant. Accordingly, no demand is sustainable against the appellant. On the services provided by the appellant to the Government, the appellant is liable to pay service tax - The assessee is liable to pay service tax on the services provided to the Government of India and Rest of the demand against the assessee are set aside. The appeal filed by the assessee, is partly allowed.
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