CESTAT Chennai: Pre-deposit waived on service tax, interest, penalty. Advertising space exempt from service tax The Appellate Tribunal CESTAT, Chennai waived the pre-deposit of service tax, interest, and penalty amounting to Rs. 53,40,000/- and Rs. 55 lakhs ...
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CESTAT Chennai: Pre-deposit waived on service tax, interest, penalty. Advertising space exempt from service tax
The Appellate Tribunal CESTAT, Chennai waived the pre-deposit of service tax, interest, and penalty amounting to Rs. 53,40,000/- and Rs. 55 lakhs respectively. The Tribunal ruled that the activity of canvassing advertisements for newspapers falls under the exemption for sale of space in print media, thus not subject to service tax. Recovery of the amounts was stayed during the appeal process.
The Appellate Tribunal CESTAT, Chennai heard the application for waiver of pre-deposit of service tax of Rs. 53,40,000/- along with interest and penalty of Rs. 55 lakhs. The demand was confirmed due to the activity of canvassing advertisements falling under "Business Auxiliary Service". However, the Tribunal waived the pre-deposit as sale of space for advertisement in print media is exempted from service tax, and the promotion of newspapers through advertisements results in sale of space. Recovery of the amounts was stayed pending appeal.
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