TMI Blog2018 (9) TMI 1070X X X X Extracts X X X X X X X X Extracts X X X X ..... ee be considered as a commission agent of the media is agreed upon - the assessee is not liable to pay service tax on the discount received under BAS - appeal dismissed - decided against Revenue. - Appeal No. ST/40629/2016 - Final Order No. 42073/2018 - Dated:- 2-7-2018 - Shri Madhu Mohan Damodhar, Member (Technical) And Shri P Dinesha, Member (Judicial) Shri. A. Cletus, ADC (AR) for the Appellant Shri. N. Viswanathan, Advocate for the Respondent ORDER Per Shri P. Dinesha, The assessee is in the business of providing Advertising Services, a taxable service in terms of Section 65(105)(e) of the Finance Act, 1994. A Show Cause Notice dt. 12.04.2010 was issued to the assessee as to why: - I. An amount of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T., Mumbai [2014-TIOL-1650-CESTAT-Mum.] Group M Media India Pvt. Ltd. Vs. C.C.E., Thane-I [2012-TIOL-804-CESTAT-MUM] M/s. McCANN ERICKSON (India) Pvt. Ltd. Vs. C.S.T., Delhi [2008-TIOL-271-CESTAT-DEL] M/s. Kerala Publicity Bureau M/s. Manik Advertisers Vs. C.C.E. Vishakapatnam C.C.E., Hyderabad-II [2007-TIOL-1594-CESTAT-Bang.] EURO RSCG Advertising Ltd. Vs. C.S.T.,Bangalore [2007 (7) S.T.R. 277 (Tri. Bang.)] Aggrieved by the said order of the Ld. Commissioner (Appeals), the Revenue is in appeal before us. 2. During the course of hearing, Shri. A. Cletus, Ld. Department Representative, appeared for the Revenue and Shri. N. Viswanathan, Ld. Advocate appeared for the assessee. 3. The contentions of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee while computing the taxable income, have deducted the discount amount from the total commission received by them and paid the Service Tax only on the net amount. 5. We have considered the rival contentions and the decision referred to supra in this Bench of the Tribunal. Appellant, during the course of rendering Advertisement Service, got a discount of 15% from media where advertisements were placed. In the Show Cause Notice stage itself, the Revenue had entertained a serious doubt on the receipt; itself had termed the same as discount and later called it commission. Be that as it may, but after receipt, assessee did pay service tax at applicable rates. It is also an undisputed fact that in many cases, the assessee passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counts / incentives received by the advertising agency, through print media, is subject to levy of service tax was analysed and discussed. Tribunal in those cases has held that the incentives received are not liable to service tax. Following the same, we find that the impugned order is unsustainable. The same is set aside and the appeal is allowed with consequential relief, if any. We, therefore, see no force in the contention of the Department that the assessee is liable to pay service tax on the discount received under BAS and, therefore, dismiss the Revenue s appeal. 6. For these reasons, we see no reason to interfere with the finding of the Ld. Commissioner (Appeals). The Department appeal is therefore dismissed. (Operative ..... X X X X Extracts X X X X X X X X Extracts X X X X
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