9911796707
TMI Blog2009 (8) TMI 726X X X X Extracts X X X X X X X X Extracts X X X X ..... recovered amount paid to such broadcasting agencies from clients. In their invoices, the Service tax paid and charged by broadcasting agencies is also shown as collected from clients. In addition wherever, appellants received Commission or charged for the services rendered to the clients for which they charged Service tax separately and remitted the same. The demand for Service tax of Rs. 3,48,90,125/- with interest as applicable has been confirmed against the appellants on the ground that they are liable to pay Service tax on the entire amount collected by them from the clients, for the time slot sold by them. Penalties under various Sections of Finance Act, 1994 have also been imposed. 2. Shri S.J. Vyas, learned advocate on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iscount received by the advertising agency, Service tax is separately leviable under the category of advertising services. In this regard, your attention is invited to Board's Circular F. No. 341/43/96-TRU, dated 31-10-96 wherein it was clarified that the commission received by the advertising agency for getting the advertisement published in the print media (i.e. newspaper, periodicals etc.) or the electronic media (Doordarshan, private channels, AIT etc.) will be includible in the value of taxable service under the category of the "advertising service."' He also submits that the demand is barred by limitation. 3. On the other hand, learned SDR cites the decision of the Tribunal in the case of Vijay Television (P) Limited v. CCE, C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the Service tax amount from the appellants, appellants in turn have to collect from the customers. Prima facie it appears to be a procedural irregularity. If the appellants are treated as broadcasting agency and if the correct procedure is followed, the appellants should have taken credit of Service tax paid by the broadcaster and charged the Service tax on the full amount to the clients and utilize the service tax credit for payment of Service tax. In such a situation, there would not have been a case against the appellants. Prima facie, it appears that the demand for the service tax by the Revenue amounts to collection of Service tax on the same amount twice. However, this is required to be examined in detail by examining of all evidenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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