2017 (5) TMI 101
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....ke Media Planning, buying space and time slot on behalf of client, in various media, releasing advertisement in these media, organizing events, data base management, creative designing etc. In terms of the agreement the appellants acted as agent for their client (Dabur). They placed advertisements in media. The broadcasters offered discount on the gross value of media time/space, brought by the appellant. The said discount is passed on to the client. The media company/ broadcasters pay service tax on the net amount charged by it. The appellants as advertising agency paid service tax on the commission charged by them. The transaction involved can be captured as below :- 2. Gross media cost being Rs. 100/- a discount of 15% is offered by the....
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....ated 02/03/2017 of CST, Delhi - II. In the said order, the Commissioner followed the earlier adjudication order dated 25/07/2016 and dropped the demand. The order dated 25/07/2016 has attained finality, as no appeal has been filed by the Revenue against the same. 5. The learned Counsel also relied on Board Circular dated 01/11/1996 which specifically covered the issue of tax liability of advertising agency. In the said circular it is categorically mentioned that the amount paid by the advertising agency for space and time, in getting the advertisement published in the print/electronic media, will not be includable in the value of taxable service for the purpose of levy of service tax. It is clarified that the commission received by the adv....
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.... very grounds have been dropped by the Original Authority and the Revenue has accepted the findings of the Original Authority. We note that in the orders dated 02/03/2017 and 25/07/2016, the Original Authorities examined the disputed issues at great length. It is noticed that the role of the appellant as a "pure agent" in terms of Rule 5 (2) of the Service Tax (Determination of Valuation) Rules, 2006 has been examined in full detail. The Original Authority, after recording the satisfaction of 8 conditions mentioned under Rule 5 (2), held that the appellants have fulfilled all the conditions of a pure agent acting on behalf of M/s Dabur. The Original Authorities, in both these proceedings with respect to the appellants, for later periods, ca....