9911796707
TMI Blog2018 (6) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... ts were providing services of display of bus panel advertisements etc. directly to clients or other agencies, Directorate of Advertisement and Visual Publicity (DAVP), Govt. organizations etc. without discharging service tax liability on service charges realized and without filing periodical ST-3 returns. Proceedings were initiated against the appellants, which culminated in an adjudication Order demanding service tax of Rs. 42,06,776/- along with education cess of Rs. 50,482/-, with interest thereon and imposition of penalties under various provisions of law, for the period 01.07.2003 to 31.03.2006. On appeal, the Commissioner (Appeals) vide order No. 144/2009 (M-ST) dated 30.11.2009 (impugned order) set aside the penalty imposed under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circular F. No. 341/43/96-TRU dated 31.10.1996. This view is also held by the Hon'ble Tribunal in the case of Prithvi Associates (supra), which has also been upheld by the Hon'ble Apex Court (supra). iv) With regard to the penalty imposed on the appellant under Section 78 of the Act, it is pleaded that the appellant has started the business from July 2003 and was unaware of the service tax implications. The liability to pay service tax was under confusion as seen from the various Circulars issued. The issue of service tax liability for the activities undertaken by the appellant was held to be not liable to service tax in certain decisions of the Hon'ble Tribunal, such as:- a) Star Neon Vs. CCE - 2006 (2) STR 588 (Tri. Del.) b) Rex Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ories:- i) Bus panel advertisement services rendered directly to the clients. ii) Bus panel advertisement services rendered to DAVP and other Government agencies. iii) Bus panel advertisement services rendered to other Advertisement agencies. 5.3 The taxable service in respect of advertisement agency was defined in Section 65 (105e), before 16.05.2008, as in service provided to a client, by advertising agency in relation to advertisement, in any manner. The words "to a client" were substituted by " to any person" w.e.f. 16.05.2008 by the Finance Act, 2008. The appellants are only disputing the service tax demand to the extent of services provided to other advertising agencies. They have argued that they provided services only to other a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be collected by the agency. It goes without saying that if the film producer chooses to charge the client directly for the film or documentary produced by him then the film producer is to be regarded as having rendered service to the client in relation to advertisement and he will therefore, be liable to pay service tax accordingly." 5.4 In the circumstances, we hold that there cannot be demand of service tax liability in respect of the value of the services provided to other advertising agencies and hence that part of the impugned order which upheld the said demand is required to be set aside, which we hereby doe. 5.5 Coming to the issue of penalty, we note that the issue in dispute was very much mired in litigation as evidenced by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
