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2009 (11) TMI 218 - AT - Service TaxAdvertising agency- The assessee was engaged in booking of space or time in media. Whenever a request was received, it simply booked the space in the newspaper or booked the time in the media, collected service charges and paid the said amount to the media or newspaper. The assessee got a discount from the media/newspaper and passed on a portion of the same to the clients and retained balance as its remuneration for the services provided by it. However the assessee paid service tax on the full gross amount billed by them to media without considering the discount of 12% received from the media or newspaper. Subsequently, the assessee filed a refund claim. The adjudicating authority rejected the refund claim of the assessee on plea of unjust enrichment on ground that the tax collected from clients was not refunded. The Commissioner (Appeals) held that the service provided by the assessee was not advertising agency’s service, the assessee was eligible for refund claim. Held that- it is well settled that service tax is payable only on the actual amount received by the service provider. Therefore the Commissioner (Appeals) was justified in deciding the issue in favour of assessee. Therefore, the appeal filed by the revenue deserved to be rejected and the appeal filed by the assessee was to be allowed.
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