TMI Blog2015 (11) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... d expertise involved in making, preparing display or exhibiting the advertisement and not simply providing of a place or space to the advertiser. The expression display or exhibit does not mean the physical act of display and exhibit, but relates to the services rendered, as an expert body, to the client, for the purposes of display or exhibit. The same may involve the expertise of the provider of the services to advise the client as to in which manner, the advertisement should be displayed i.e. whether in the newspaper or on TV channel or by way of hoardings or a audio/video advertisement in air or any other medium or at what point of time the same should be exhibited. We find that no such expert services are being provided by the appellant in the present case. They are merely canvassing their clients to make utilize of the space available with them for the purposes of advertisement of their product during the course of matches, which are going to be telecasted and by which they can popularize their products. As such, the activities amount to sale of space and not as regards advertisement. - there was no Advertising Agency Service received by the appellant from abroad excep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. 23.03.2010 (01.02.2009 to 31.01.2009) 2,45,96,777/- International Hockey Federation 4,08,85,000 42,11,115 1. ICC Development International, Dubai 6,46,87,500 66,62,813 1. ICC Development International, Dubai 7,27,50,000 74,93,250 1. Asian Tour International Ltd. (World Sports Group India Pvt. Ltd.) 6,04,81,154 62,29,559 1. Total 23,88,03,654/- 2,45,96,777/- 4. 31.03.2011 (01.01.2010 to 31.12.2010) 20,21,450/- International Hockey Federation 1,96,25,735/- 20,21,450/- The aforesaid impugned demand was confirmed under Advertising Agency service [Section 65 (3) read with Section 65 (105) (e) of the Finance Act, 1994]. 2. The facts, briefly stated are, as under:- The appellant is a manufacturer of motor cycles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncy service, therefore, the demand of ₹ 72,157/- and ₹ 98,171/- are sustainable. 4. Ld. Departmental Representative, on the other hand, contended that (i) the advertisement material has been defined in the agreement as under:- Advertising Material - shall mean all advertising, communications and promotional material of whatever nature and in whatever media used or to be used by or on behalf of the sponsor in relation to the official sponsor rights (OSR) In the terms of this agreement, it appears that the purpose of formulating the above terms is that during the course of cricket matches, the arrangement of whatever medium, will be for the purpose of display, for advertisement, for pronouncement, for name etc, relating to the product. The making of advertisement through any medium is a strong tool to promote the publicity of any product. Therefore, the purpose of making payment by the assessee is also to generate popularity through a professionally qualified methods and manners of medium of advertisement, the one described under the said agreement. Such professionalism regarding medium of advertisement can be perceived under the contents incorpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Global Partner and are not approved in writing prior to such manufacture, advertising and distribution, or do not, in GCCs reasonable opinion, match the samples submitted as indicated above. The Global Partner undertakes that it shall discontinue such manufacture, advertisement and distribution immediately upon receipt of written notice from GCC. The above provision of the agreement with GCC shows that without the advice and approval by GCC, no advertisement could be displayed or exhibited and thus, the services provided by the GCC and others were in the nature of advertising agency service. 5. Both parties agreed during the hearing of the stay applications that as the case was covered by the judgement of CESTAT in the case of BCCI Vs. CST, Mumbai (supra), the appeals themselves could be disposed of and accordingly the order was pronounced in the open court. However, in his written submissions submitted subsequently on 25.06.2015, ld. Departmental Representative stated that as the case was listed only for deciding stay applications, only stay applications should be disposed of and the appeals should not be disposed of. Ld. Departmental Representative cited the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 65 (105) (e) [to any person], by an advertising agency in relation to advertisement, in any manner; A perusal of the rights granted to the appellant under the sponsorship agreements reveals that these are agreements for sponsorship of various sports events and not for receiving advertising agency service. For example, the agreement dated 8.7.2002 between the appellants and Global Cricket Corporation Pvt. Ltd. (GCC) clearly shows that under the said agreement, on account of the global partnership fee paid by the appellant, GCC grants it global partnership rights on an exclusive basis within the brand sector only throughout the licensed territory subject to and in accordance with the provisions of the said agreement and applicable laws and regulations from time to time. Global partnership rights is defined as those rights and licenses relating to each event as are granted to global partners subject to and in accordance with the provisions of this agreement and set out in Schedule 4 thereof . Further, clause 7 of the said agreement deals with the obligations of GCC towards the appellant. None of these clauses can be construed to mean that GCC has provided any advertising agen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne Pharmaceutical Ltd. [2006 (3) STR 71 (Tri.-Mum)] held that when the existing tariff definition remains the same, then the introduction of new tariff entry would imply that the coverage under the new tariff entry is an area not covered by earlier entry. 10. Our analysis and inference above are supported by CESTAT judgement in the case of BCCI Vs. CST, Mumbai, which inter alia observed as under:- 11. However, we also would like to deal with the scope of individual services provided by the appellant and alleged to be as advertising services. The Revenue has sought to tax the sale of telecast rights of cricket matches conducted by the appellant to various broadcasting agencies. We would like to ask ourselves a question as to by selling the television rights to various channels which service relatable to advertisement is being provided by the appellant? Firstly, there is no advertisement involved and secondly there are no services rendered by BCCI to the broadcasters. Admittedly, BCCI is the owner of the rights in the cricket match and by selling these rights for telecasting, no service can be said to have been provided by BCCI to any client. Taxable service, as defined in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... client to sponsor the event and persuade them to give advertisement in particular newspaper/periodical/magazine would not amount to rendering of services in connection with advertisement As such, it is clear that what is being taxed is planning and expertise involved in making, preparing display or exhibiting the advertisement and not simply providing of a place or space to the advertiser. The expression display or exhibit does not mean the physical act of display and exhibit, but relates to the services rendered, as an expert body, to the client, for the purposes of display or exhibit. The same may involve the expertise of the provider of the services to advise the client as to in which manner, the advertisement should be displayed i.e. whether in the newspaper or on TV channel or by way of hoardings or a audio/video advertisement in air or any other medium or at what point of time the same should be exhibited. We find that no such expert services are being provided by the appellant in the present case. They are merely canvassing their clients to make utilize of the space available with them for the purposes of advertisement of their product during the course of matches, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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