TMI Blog2017 (11) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... side the penalties imposed by the lower authorities. Penalties - Held that: - since the penalties on similarly placed corporations/municipalities are set aside we find that the lower authorities were correct in not imposing any penalties/setting aside the penalties. Appeal allowed in part. - ST/27456/2013, ST/COD/21526/2015, ST/20561/2015, ST/COD/21427/2015, ST/22318/2015, ST/EH/30706/2016, ST/25174/2013, ST/EH/30708/2016, ST/3226/2012, ST/COD/30329/2017, ST/30586/2017, ST/COD/30534/2017, ST/30934/2017, ST/1887/2012, ST/2778/2012, - A/31695-31720/2017 - Dated:- 24-10-2017 - Mr. M.V. Ravindran, Member (Judicial) And Mr. Madhu Mohan Damodhar, Member (Technical) ST/2971/2012, ST/2989/2012, ST/3225/2012, ST/3324/2012, ST/25662/2013, ST/28197/2013, ST/20113/2014, ST/22199/2014, ST/23567/2014, ST/23631/2014, ST/20854/2015, ST/20855/2015, ST/30244/2016, ST/30357/2016, ST/31205/2016, ST/30133/2017, ST/COD/30392/2017 ST/30707/2017 Shri B. Venugopal, Ch. Venkateshwara Rao, Y. Srinivas Reddy, Advocates for the Appellants. Shri A. Srinivas, V. Srinivas, Ajay Kumar, (ARs) for the Respondents. ORDER [Order per: M.V. Ravindran] By this common order we a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 45/2012 (G) ST dt. 30.07.2012 12. ST/3225/2012 Greater Hyderabad Municipal Corporation CCE, C ST, Hyderabad-II OIO No. 03/2011-Adjn. (ST) (Commr.) dt. 21.03.2011 13. ST/3324/2012 CC, CE ST, Guntur Ponnur Municipality OIA No. 59/2012 (G) ST dt. 27.08.2012 14. ST/25662/2013 Greater Visakhapatnam Municipal Corporation CCE, C ST, Visakhapatnam-II OIO No. VIZ-STX-001-COM-119-12 dt. 30.10.2012 15. ST/28197/2013 Vijayawada Municipal Corporation Guntur OIO No. 23/2013-ST dt. 22.04.2013 16. ST/20113/2014 CCE, CC, Visakhapatnam-II Municipal Corporation OIA No. 38/2013 (V-II) ST 02/2013 (V-II) (D) ST dt. 30.10.2013 17. ST/22199/2014 CC, CE ST, Guntur Eluru Municipality OIA No. 06/2014 (G) ST d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on account of sale of space or time for advertisement owned by the appellants. Based on the data collected by the Department, proceedings were initiated against the appellants proposing demand of service tax under these two heads. These proposals were largely confirmed by the original authority. On appeal to Commissioner(Appeals), except for waiver of penalties in some cases by and large, the tax demands were upheld. Accordingly, the appellants are before this forum. 3. Today when the matter came up for hearing, the appellants were represented by Shri Y. Srineevasa Reddy, learned Advocate and Shri Venkateshwara Rao, learned Advocate. The chart containing the details of the appeals, the appellants concerned, the period involved, demand of tax on renting of immovable property and sale of space and time etc. was submitted by the learned counsels, which are reproduced below for easy reference. Appeal No. Appellant Period Renting of immovable property (Rs.) Advertisement Tax (Rs.) ST/1279/2012 Municipal Corporation-Rajahmundry 2006-07 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nakapalle Municipality April 2011 to March 2012 - 39,260 ST/20160/2015 The Commissioner-Tuni Municipality April 2011 to March 2012 - 21,479 ST/1284/2012 Proddatur Municipality 2006-07 to 2008-09 2,31,147/- 77,434 ST/2686/2012 Chittoor Municipality 2006-07 to 2008-09 1,77,150 41,304 ST/3261/2012 Nadyal Municipality -do- 1,08,754 29,636 ST/3358/2012 Ponnur Municipality -do- 2,31,154 15,978 ST/26027/2013 Tenali Municipality 2006-07 to 2009-10 1,98,630 8,456 ST/26036/2013 Chilakaluripet Municipality -do- 3,46,651 9,910 ST/28581/2013 T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istration for such activity, the fact of income under this head and discharge of service tax was not informed by the appellants. 6.2. With regard to issue of demand of service tax on sale of space or time for advertisement service, it is the contention of the Department that income received by the appellants was actually in the nature of commercial consideration for sale of space for advertisement. Accordingly this activity and the income thereof would definitely fall within the ambit of sale of space or time for advertisement and therefore the impugned demands will sustain, though municipalities / corporations are collecting advertisement tax. 7. Heard both sides and gone through the facts. 8. We intend to take these two contentious issues one by one. 9.1. With regard to dispute of renting of immovable property service, the learned advocates for the appellants have conceded the tax liability for the normal period. In any case, there cannot be any dispute on taxability on this score when the said activity is not being shown to be covered by any exclusion or exemption from service tax thereof. We therefore hold that this activity will definitely be leviable to se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sement. However, that contention is not coming forth either in the show-cause notice or in the orders of the lower authorities. In fact, the aforesaid letter relied upon in the show-cause notice has only added to the confusion terms contentions are seen in the same letter. We are of the considered opinion that if the amounts received by the appellants are only towards advertisement tax collected by them under statutory powers bestowed on them, that activity cannot be brought under ambit of service tax and the taxable value thereof cannot be taxed as sale of space and time for advertising service. This is a fundamental principal of taxation, which has been reiterated by the CBEC in the Circular No.192/02/20016 wherein at Sl.No.3, the Board clarifies that taxes, cesses or duties levied are not consideration for any particular service as such and hence not leviable to service tax. However on the other hand, if the impugned amounts received are towards or partly or fully for sale of space for advertisement, they will definitely then be liable for tax under the sale of space and time for advertisement service. However in the absence of any detailed facts and records before us, this pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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