TMI Blog2018 (6) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... uch mired in litigation as evidenced by the litigations on the issue - the imposition of penalties in this case is unjustified and requires to be set aside. Appeal allowed in part. - ST/130/2010 - FINAL ORDER No. 41732/2018 - Dated:- 13-3-2018 - Ms. Sulekha Beevi, Member (Judicial) and Shri Madhu Mohan Damodhar, Member (Technical) Ms. S. Yogalakshmi, Advocate for the Appellant Shri K.Veerabhadra Reddy, JC (AR) for the Respondent. ORDER Per Bench The facts of the case are that M/s. Iswarya Publicities Pvt. Ltd., the appellants herein, are engaged in providing various services relating to advertisement such as making and preparation of advertisements on bus panels, bus stations etc. On investigation by the depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as much as services provided to clients alone would be taxable service. This has also been clarified in CBEC Circular No. 341/43/96 dated 31.10.1996. Though services provided to DAVP is also being contested on the same grounds in the grounds of appeal, the same is not being pressed now, due to the decision of the Hon ble Tribunal in the case of Prithvi Associates Vs. CCE, Mumbai 2006 (1) STR 32 (Tri-Mum), which has been upheld by the Hon ble Apex Court reported as 2015 (40 STR 625 (S.C.). She also placed reliance on the decision of the Hon ble Tribunal in Zee Telefilms Ltd. Vs. CCE 2006 (4) STR 349 (Tri.-Mum.). iii) The amount paid by the appellant to the transport corporations, to acquire space for advertisements is liable to be exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner (Appeals) has also extended cum-tax benefit and directed re-computation of tax liability accordingly with interest. For these reasons the appeal does not hold merit. 4. Heard both sides and gone through the records. 5.1 The definition of advertising agency service in Section 65 (3) of the Finance Act 1994, as it stood before 01.05.2006 read as under:- Advertisement Agency means any [Commercial Concern] engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant with effect from 01.05.2006, as amended by the Finance Act, 2006, the words Commercial Concern was substituted by person . 5.2 The appellants were rendering services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question has been raised whether the film producer is also liable to pay service tax on the documentary or film prepared by him in relation to an advertisement. In this connection, it is relevant to note that taxable service is a service provided to a client by an advertising agency in relation to advertisement in any manner. Client is the advertiser. Therefore, in this case the advertising agency cannot be considered as a client when the definition of taxable service in relation to advertisement is interpreted in proper context . Accordingly, it is clarified that a film producer in this case is not liable to service tax. However, the advertising age3ncy will no doubt include the expenses incurred on getting the film or documentary produc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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