9911796707
TMI Blog2023 (9) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... der. 2. The facts of the case are that the assessee is acting as advertising agency and engaged to procure advertisement for media only and earning commission @ 15% on the total bill raised on advertisement. The assessee is rendering service i.e. matter to be published in media towards advertisement. The revenue is of the view that the assessee is availing 85% exemption on the value of taxable service from payment of service tax without any authority of law during the impugned period and also not incorporated the entire value of taxable service in their ST-3 return as detected from their profit and loss accounts, resulting in non-payment of service tax. Therefore, two show cause notices were issued to the appellant to demand service tax an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice 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 H.K Associates is relevant. In the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & Sales Promotion expenses." Similar clarifications appear in the balance sheets for the other years as well. Whether commission of sales could be treated as advertisement and sales promotion expenses is a debatable point. However, this is not an issue to be decided by us. It suffices to say that the terms of the agreement produced and the entries in the balance sheets of manufacturing company and those of M/s. H.K. Associates support the claim by the learned advocate for the parties. The balance sheet of M/s. H.K. Associates also mentions these amounts only as commission on sales. 8. In view of the above, we find merit in the appeal of M/s. H.K. Associates and accordingly, allow the same. Inasmuch as the appeal of main party M/s. H.K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. In this case, the appellant has provided the service for promotion of product by agreeing as model herself for advertisement films, TB commercials, still photographing, footage, press advertisement, outdoor, packaging and sales material etc. The revenue is of the view that as the appellant is engaged in the activity of promoting/marketing or sales of the product manufactured by her client etc., therefore, the said activity falls under "Business Auxisiary Service". The liability of service tax has not been disputed by the appellant. The appellants contention is that appellant has appointed M/s. Matrix as their agent to receive payment on behalf of the appellant from the clients and thereafter discharge the service tax liability on the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment agencies and claim that the same is exempt from service tax, we find that the said service has not been exempted from payment of service tax as observed by this Tribunal in the case of Prithvi Associates v. Commissioner of Central Excise, Mumbai [2006 (1) S.T.R. 32 (Tri.-Mumbai)], wherein the Tribunal has observed as under :- 6. Definition of "advertisement" and advertising agency as appearing in Sections 65(2) and 65(3) of the Finance Act, 1994 is to the following effect :- "Advertisement" includes any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation made by means of light, sound, smoke or gas; "Advertising agency" means any commercial concern engaged in providing any servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advertisements were public interest advertisements and were meant for creating general awareness in the public does not make any difference. Advertisement is a public announcement, which can be made by way of display of any hoardings or otherwise. Advertisement is used to awaken, enlighten and activate the public at large concerning matter that effect the society generally. As such, the fact that these Government departments were releasing advertisements so as to create public awareness will not take away the status of the activity as advertisements and the appellants as advertising agency. Therefore, we hold that on the services provided by the appellant to the Government, the appellant is liable to pay service tax. Accordingly, we pass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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