TMI Blog2017 (7) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... he Greater Hyderabad Municipal Corporation Act, 1955, authorising municipal taxation on advertisements has been adopted in respect of the municipal corporations in Andhra Pradesh. In respect of the municipalities, they are authorised to collect the said tax vide Section 114 of the Andhra Pradesh Municipalities Act, 1965 This activity of the appellant is certainly not selling of space or time for advertisement as alleged by the show-cause notice and confirmed / upheld by the lower authorities. Appellants then cannot be subjected to tax on this score. Appeal allowed - decided in favor of appellant. - ST/25556/2013-DB - A/30885/2017 - Dated:- 19-6-2017 - Mr. M.V. Ravindran, Member (Judicial) And Mr. Madhu Mohan Damodhar, Member (Tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of City of Ahmedabad [2016(45) STR 166 (Guj.)]. 4. On the other hand, learned AR Shri Arun Kumar opposes the appeal and submits that the activity involved was only renting of space and time for advertising and hence tax liability is confirmed. 5. Heard both sides and perused records. 6. It is a cardinal principle of taxation that there should not be any tax on tax. In respect of service tax liability demanded by the Department on alleged sale of space or time for advertisement service, we find that in the Gazette Notification published by the Municipal Corporation, Rajahmundry the rate of tax within the municipal limits has been indicated. We further find that the Section 197 (1f) of the Greater Hyderabad Municipal Corporatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge 85/86 of the appeal paper book) has conceded . . As the appellants are receiving the amounts from various private parties as advertisement tax . However, in spite of such findings, lower authorities nonetheless conclude that the said activity is falling in the inclusive portion of the definition of the category of sale of space or time for advertisement. 7. From the above discussion, what stands out is that the Department is seeking to levy service tax on the amounts collected by appellant as advertisement tax. This activity of the appellant is certainly not selling of space or time for advertisement as alleged by the show-cause notice and confirmed / upheld by the lower authorities. Appellants then cannot be subjected to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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