Printed publication treated as a book, keeping sale of advertisement space outside service tax where it was not a commercial directory.
A printed publication such as KALDARSHIKA, containing religious, cultural and historical information with tables, charts and auspicious-date details, may qualify as a "book" under the inclusive definition in the Press and Registration of Books Act, 1867. Because the publication was not a business directory, yellow pages or trade catalogue issued for commercial purposes, it fell within print media and outside the taxable service of sale of space for advertisement. On that basis, the service tax demand, along with interest and penalty, was unsustainable and the appellate order deleting the demand was left undisturbed.
Issues: Whether the publication "KALDARSHIKA" was a "book" and therefore covered by the exclusion for print media, so as to take the activity outside the taxable service of sale of space for advertisement.
Analysis: The publication was examined as a ready reckoner containing religious, cultural and historical information, tables, charts, auspicious dates, eclipse details and similar material. The definition of "book" in the Press and Registration of Books Act, 1867 was treated as inclusive and broad enough to cover printed sheets such as maps, charts and plans. The exclusion inserted in Explanation 2 to the taxable service definition for business directories, yellow pages and trade catalogues meant for commercial purposes did not apply to this publication. On that basis, the publication was held to fall within the scope of "book" and consequently within print media.
Conclusion: The publication was not chargeable to service tax under sale of space for advertisement, and the demand, interest and penalty were unsustainable.
Final Conclusion: The tribunal upheld the first appellate order and declined to interfere with the deletion of the tax demand.
Ratio Decidendi: A printed publication with informational tables and charts may qualify as a "book" within the inclusive statutory definition, and if it is not a commercial directory, yellow pages or trade catalogue, the sale of space therein remains outside the taxable service of sale of space for advertisement.
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AI Drafter ✕
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