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TMI Blog2024 (6) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... er "advertisement services". The advertising agency service is subject to service tax under section 65 (105) (e) of the Finance Act, 1994 [the Finance Act]. The advertising agency have shown service tax paid on the commission amount received from the print media separately in their invoices raised on the appellant and the appellant has taken CENVAT Credit on the strength of such invoices and utilized it for discharging service tax liability in terms of the CENVAT Credit Rules, 2004 [the 2004 Rules]. 3. The Deputy Commissioner, by the order dated 04.10.2013, dropped the proceeding initiated by the show cause notice dated 17.07.2012 for the following reasons: "9.6 xxxxxxxxx. Thus in the whole system, two transactions are involved, one is between the client and the advertising agency and other one between advertising agency and print media. Thus at the end, consideration equivalent to 15% of the gross amount remains with "Advertising Agency", which they charge from clients and retain with them, as they are required to pay amount only to the extent of 85% to the Print Media. Obviously the amount of 15% does not flow from Print Media to "Advertising Agency", instead it remains with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f credit as raised vide impugned notice is not sustainable on merits and in such a situation, the question of imposing penalty and recovery of interest also does not arise. Accordingly, I pass the following order." 4. Feeling aggrieved, the department filed an appeal before the Commissioner (Appeals) who by order dated 15.03.2018 set aside the impugned order and allowed the appeal for the following reasons: "9.1 I observe that in view of above, it is clear the respondent in the whole process got the services of providing space of advertisement from print media through their appointed agents. Further, it is established law that pattern of invoicing or documentation does not alter the basic nature of service, which in this case was essentially Business Auxiliary Service. It is not in doubt that the Service tax that has been paid by the advertising/ canvassing agency was for business auxiliary service given to the print media. No such service was given to the respondent. The advertising agency should have charged this Service tax on the Commission amount from the print media to whom they were giving this service. The service given to the respondent by advertising/ canvassing agency ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Tax Appeal No. 51467 of 2018 (SM) decided on 11.07.2018], and Career Point Info Systems Ltd. vs. C.C.E, Udaipur [Service Tax Appeal No. 51640 of 2018 (SM) decided on 24.01.2019]. The relevant portions of the said order dated 29.07.2019 passed by the Commissioner (Appeals) are reproduced below: "5. I have carefully gone through the submissions made by the appellant in their appeal memo as well as submission made during the course of personal hearing. I find that the issue to be decided in these appeals is whether or not the appellants are eligible to avail credit on commission received by advertising/ canvassing agent from the print media. I find that the case of department is that appellant has availed CENVAT credit on the invoices issued by advertising agents who are engaged in booking, canvassing for advertisements for publishing, on commission basis fixed by Indian News paper Society for publishing the same in print media. The said Advertising agents have paid Service tax on commission received by them from print media but they had shown the service tax amount separately in their invoices raised to the appellant and the appellant in turn had taken the input service credit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e allowed as Cenvat Credit as input service in the hands of the appellant. 8. The ld. Counsel for the appellant has drawn attention to the copies of a few invoices which are available on record. He has also emphasized the relevant part of the agreement entered into by the appellant with advertising agencies. Perusal of such agreement indicates that the activities carried out by the advertising agencies included the preparation of such advertising as well as getting them published in print media. The service tax charged by such advertising agencies appear to be for service of the Advertisement Agency rendered to the appellant. 9. The definition of input service under Rule 2(l) of the CCR, 2004 provides for credit on any service used for providing the output service. In addition, in the inclusive part of such definition, various activities have been included in which also the service tax is available as input credit. The inclusive portion specifically mentions advertising services. Consequently there is no doubt that the activity carried out through the advertising agencies can be considered has input service in Rule 2(l). 10. In view of the above discussions, the appellant wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .C.E., Puducherry reported as 217 (52) S.T.R. 511 (Tri.-Chennai) makes it clear that the issue is no more res integra and has been decided by various coordinate benches. I respectfully agree by the said decisions. The finding of the Commissioner Appeals for holding that impugned services are Business Auxiliary Service which are not taxable hence not eligible for taking audit are therefore held to be an erroneous finding, in the given facts and circumstances. The order is accordingly set aside. Appeal stands allowed." 11. It also needs to be noted that the Additional Commissioner (Appeals), by order dated 31.01.2013, also dropped the proceedings that had been initiated by the show cause notice dated 17.07.2012 issued to the appellant for the prior period from 2009 to 2011 and nothing has been pointed out by the department to show that this order has been set aside. 12. Thus, when in the matter of the appellant for the previous period and the subsequent period the show cause notices issued to the appellant on the same allegations have been discharged, based on two decisions of the Tribunal in Bansal Classes and Career Point, the order impugned dated 15.03.2018 passed by the Commiss ..... 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