9911796707
TMI Blog2006 (3) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... istrict Industries Centre, Ernakulam for printing of stickers, labels, visiting cards, etc. using raw materials such as paper, gum, card, ink, plastic sheet, aluminium sheet and C.T. Sheets. Revenue proceeded against the appellants on the ground that they were engaged in the business of running an advertisement agency and had not paid the Service Tax for the period from 1.11.1996 to 31.3.2001. The original authority confirmed the demand of Rs. 41,40,792 towards Service Tax payable for the above period. He imposed a penalty of Rs. 50,000 under section 76 and Rs. 10,000 under section 77 of the Finance Act, 1994 for failure to furnish the prescribed returns. Interest under section 75 was also passed on the demand. The appellants challenged the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , our attention was invited to Board's clarification reproduced in Trade Notice dated 16.9.1999 of the calcutta Commissionerate wherein it has been clarified that persons engaged in the activity of compilation, printing and publishing of telephone directories, Yellow pages and business directories are not covered under the definition of 'advertising agency' and accordingly are not liable to pay service tax. It has further been stated that if these persons also undertake any activity relating to making or preparation of an advertisement, such as designing, visualising, conceptualising etc., then they will be liable to pay service tax on the charges made thereon. He pointed out that in the light of this clarification, the appellants are not l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tisement agency. Advertisement is a highly creative work. Quite a bit of cerebral input is needed. There is conceptualisation, visualisation, designing etc. While advertising, the intention is to influence the mind of the people who watch the advertisement. There are various ways of advertisement. Advertisement is done through books and magazines. There are ubiquitous advertisement is done through radio and TV channels. Now let us turn to the definition of 'advertising agency' as per the Finance Act, 1994. "Advertising agency" means any commercial concern engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes on advertising consultant.' As can be seen from the above def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Advertisement agency in the absence of any creative activity and services relating to preparation, making and display of advertisement on his part. To be called as an 'advertising agency', all the activities mentioned in the definition should be carried out by the person. We can provide one analogy. There is always a difference between a fashion designer and a tailor. A fashion designer may not do the actual stitching. He or she may provide all creative input in designing garments. A tailor simply executes the design. In our view, there is no evidence to show that the appellant is undertaking any advertising agency work in accordance with the definition given in the Finance Act, 1994. The Board's clarification mentioned in the Trade Notice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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