2016 (12) TMI 603

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..... pondent ORDER Two issues are involved in this appeal. An amount of Rs. 9,84,842/-has been demanded from the appellants for the period 1997-98 to 2000-01 on the Department's viewpoint that they constitute taxable services rendered to an advertising agency by the appellants which would come within the ambit of advertising agency service. Further, a demand of Rs. 2,63,977/- has also been confir .....

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..... ng company leases/hires their own hoardings to advertising agencies, which in turn bills the ultimate clients, then the advertising agencies become service providers, who are responsible to pay service tax on the gross amount including the money paid to the hoarding company; however the hoarding company becomes liable to pay service tax when they are directly billing the clients and not the advert .....

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..... nd conclusions of the impugned order. However he concedes that the clarifications referred to above have indeed been issued by the Department. 4.1 . Heard both sides. In respect of the first issue, involving demand of Rs. 9,84,842/- we find considerable merit in the submissions of the learned counsel. The Department has clarified the matter to the Advertising Associations in Bangalore and Chennai .....

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