TMI Blog2004 (6) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... pre-deposit of Service Tax demanded from them and the equivalent amount of penalty imposed on them. 2.1 Shri V. Laxmikumaran, learned Advocate submitted that both the Appellants are, inter alia , engaged in the business of acting as exclusive agent for foreign television channel to collect the dues from the customers of such channel in India; that M/s. Zee Telefilms had entered into agreement dated 1-1-1999 with M/s. Asia Today Ltd. and the other Appellants has entered into an agreement with M/s. Star Advertising Sales BV of Neetherlands; that the duty and responsibility of the Appellants are for providing of information to the foreign companies regarding displays, arranging sale of advertising and sponsorship on the channels, coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isplay and passing of ready-made advertisements to them for the purpose of flashing; that the mere flashing of advertisement on the channel by ATL/Star TV itself does not amount to rendering service connected with display of advertising. In this regard, he relied upon the decision of Madras High Court in the case of Advertising Club v. Central Board of Excise Customs [2001 (131) E.L.T. 35 (Mad.)] wherein the Madras High Court has held as under : "In the first place, let us first see where a person gets his advertisement flashed in the press media or electronic media, can it be said to be service. In our opinion, it could certainly not be said to be a service provided by the press media or electronic media. There is nothing done exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid by advertiser to foreign TV channel is not liable to Service tax. He also contended that when the display is a mere flash of an advertisement on the channel by M/s. ATL/Star TV, it does not amount to advertising agency service and therefore, the activity of the appellants connected with it is also not advertising agency service. He relied upon the decision of the Tribunal in the case of Contact Advertising Agency v. CCE, Chandigarh - 2001 (132) E.L.T. 245 (Tri.) wherein it has been held that printing and publishing of yellow pages does not attract Service tax and that "Service Tax" is attracted on advertising agencies which are providing services to advertiser by conceptualizing, designing, or preparing advertisement. Finally, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls and information to ATL to enable them to sell advertisement and sponsorship on the channels and collect the advertisement from advertisers in India; that they also provide potential advertisers with information regarding advertising on any of the channels; that in case of advertisers holdings Exchange Earners Foreign Current Account, M/s. Zee TV Films Ltd. also ensure that all advertisement materials, video tapes, cassettes with respect to such advertisements are directly dispatched by advertiser to M/s. ATL; that they would also assist such advertiser in complying with any formalities required under the Indian Law and obtaining any applicable consents necessary to enable the advertiser to dispatch the advertisements materials directly t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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