Advertising service tax value excludes media space and time charges; disputed amounts not added on prima facie basis.

Amounts recovered by an advertising agency for space and time booked in print or electronic media are not to be included in the assessable value of taxable advertising services where the Board's circular excludes such payments from service tax value. The circular is binding on departmental authorities, and the amount spent on flashing or publishing an advertisement cannot be treated as consideration for services rendered by the agency. On that prima facie basis, the disputed charges were not liable to be added to the taxable value, and the appellant was entitled to unconditional stay.

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Issues: Whether the charges recovered by an advertising agency for space and time booked in print or electronic media are includible in the assessable value of taxable advertising services for service tax purposes.

Analysis: The circular issued by the Board stated that amounts paid by an advertising agency for space and time, and for getting advertisements published in print or electronic media, are not to be included in the value of taxable services. Such circulars are binding on departmental authorities. The Court also noted that the amount spent for flashing an advertisement in a particular print or electronic media cannot be treated as consideration for services rendered by the advertising agency. On that prima facie assessment, the disputed charges were not liable to be added to the taxable value.

Conclusion: The issue was held prima facie to be covered in favour of the assessee, entitling the appellant to unconditional stay.

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