Advertising agency service does not cover mere booking and sale of newspaper ad space without preparing advertisements.

Merely booking and selling newspaper advertisement space, without preparing, making or designing the advertisements, did not constitute advertising agency service. The parties acted only as intermediaries in procuring advertisement orders for the newspaper, and the applicable circular clarified that such limited activity falls outside the scope of advertising agency service. No service tax was therefore leviable on the activity.

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Issues: Whether the activity of merely booking and selling newspaper advertisement space, without making or preparing advertisements, amounted to advertising agency service liable to service tax.

Analysis: The appellants acted only on behalf of the newspaper in procuring advertisements and selling printed space. They did not prepare, make, or design the advertisements themselves. The Board's circular clarified that where an agency merely brings in advertisement orders and does not undertake any further activity connected with making or preparing the advertisement, it would not fall within the scope of advertising agency and would not attract service tax.

Conclusion: The activity was not advertising agency service and no service tax was leviable on the appellants.

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