TMI Blog2008 (2) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... Order - 1. The lower authorities have demanded service tax of ₹ 3,85,373/- from the appellants for the period 1-4-1998 to 2-12-2002, treating them as advertising agency as defined under Section 65(3) of the Finance Act, 1994. They have also imposed penalties on the party under various provisions of the said Act. The activities in respect of which service tax was demanded from the appellants include preparation and erection of banners, traffic sign boards, centre median grills and barricades as required by traffic police. A part of the demand of service tax relates to fabrication and erection of hoardings for the display of advertisements of their private clients. In respect of the preparation and erection of banners, sign b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvertisement to be displayed/exhibited on the banners, traffic sign board, traffic barricade or hoarding, they cannot be said to have made or prepared any advertisement and, therefore, they did not fall within the scope of the definition of advertising agency. In support of this case, learned Counsel has relied on the following decisions (i) Commissioner of Central Excise, Chennai v. Team UPD Ltd. [2006 (3) S.T.R. 427 (Tribunal) = 2005 (179) E.L.T. 469 (Tri. - Chennai)] (ii) Rex Advertisers v. Commissioner of Service Tax, Bangalore [2006 (2) S.T.R. 330 (Tri.-Bang.)] (iii) Zodiac Advertisers v. Commissioner of Central Excise, Cochin [2006 (3) S.T.R. 538 (Tri.-Bang.)]. Counsel has also referred to Trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts seem to have made out a firm case against the impugned demand of service tax. The case law cited by learned Counsel is to the effect that, for a person to be recognised as advertising agency as defined under Section 65 (3) of the Finance Act, he should be shown to have made or prepared advertisements. The trade notice cited by counsel clarified that, in the making or preparation of advertisements, there must be conceptualisation, visualization and designing of advertisements. This trade notice was noted by the Tribunal in the said cases and it was held that, unless these aspects of an advertisement were shown to exist, it cannot be said that any advertisement was made or prepared. In this view of the matter, the appellants cannot be he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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