Municipal advertising space as a public duty, not a taxable space-selling service, leaving the service tax demand unsustainable.

Sale of advertising space by a municipal corporation was treated as part of its public duty and municipal governance function, not as a taxable service rendered to a customer for consideration. On that basis, the related charge of legal fee was not brought within the category of "space or time selling service", and the service tax demand was held unsustainable. The levy on the impugned activity was therefore rejected.

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Issues: Whether sale of space by a municipal corporation for advertisement and the related charge of legal fee constituted taxable services under the category of "space or time selling service" so as to attract service tax.

Analysis: The issue was treated as settled by prior judicial authority holding that permission granted by a municipal corporation in relation to advertisement space is part of its public duty and municipal governance function, and not a service rendered to an agent or customer for consideration. On that basis, the demand was held unsustainable.

Conclusion: The levy of service tax on the impugned activity was rejected and the assessee succeeded.

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