TMI Blog2023 (1) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... as not discharged any service tax liability as the same was liable for the levy of Service Tax. M/s. Surya Publicity was purchasing time and space in the newspaper / media companies through the appellant. The amount paid by M/s. Surya Publicity to the appellant for purchase of time M/s. Surya Publicity to the appellant for purchase of time and space was sought to be tax by revenue under the category of Advertising Service. It is seen that no evidence has been placed from record to establish that the appellant were providing Advertising Agency Services. The role of appellant was limited to being an intermediary in the sale of space/ time for media agency on commission basis. In this regard the decision of Tribunal in case of CCE, CHANDI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable service under Section 65(105)(e) of the Finance Act 1994. Section 65 (3) of the Finance Act, 1994 which was inserted by the Finance Act, 1996 w.e.f. 01.11.1996 reads as under: advertisiong agency means any person engaged in providing any service connected with he making, preparation, display or exhibition of advertisement and includes an advertising consultant; w.e.f 01.05.2006, the term person was substituted for the term commercial concern . The consequences of this changes are as follows: For the period prior to 01.05.2006, only services provided or to be provided by a commercial concern(and not by any other person) were liable to tax. Services provided or to be provided by any person (including a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion basis. Such persons/ agencies do not provide any other services like making preparation, display or exhibition of advertisement. Whether merely canvassing advertisement for publicshing on a commission basis by persons/agencies is classifiable as Advertising Agency Service [section 65 (105)(e)] or not? Merely canvassing advertisements for publishing, on commission basis, is not classifiable under the taxable service falling under section 65(105) (e) such services are liable to service tax under business auxiliary service [section 65(105) (zzb)]. 2.3 He also relied on the decision of Tribunal in case of Adbur Pvt. Ltd.- 2017 (5) GSTL 334 (Tri. Del.) H. K. Associates 2009 (14) STR 543 (Tri.-Del.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d earlier. No evidence have been relied upon to hold that M/s. H.K. Associates have conceived, designed, prepared the advertisements in question. 7.2 The amounts paid to M/s. H.K. Associates have been accounted under the category of advertisement and sales promotion expenses by KBPL. A portion of the sum so received was spent on advertisement by H.K. Associates. These facts alone cannot lead to an inference that M/s. H.K. Associates have rendered the services as advertising agency and the entire amount of about Rs. 9 crores received from KBPL has to be treated as representing payment for rendering advertising services. 7.3 We have also perused the notes given in the balance sheets of KBPL. For example, in the balance she ..... X X X X Extracts X X X X X X X X Extracts X X X X
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