2018 (5) TMI 1851 - AT - Service Tax

Municipal Corporation Fees Exempt from Service Tax

The Appellate Tribunal CESTAT ALLAHABAD held that fees charged by a Municipal Corporation for providing space to advertising agencies are not subject to ... Levy of service tax - fees charged for giving permission for providing space by private parties to advertising agency - Municipal Corporation - Held that:- The issue is no more res-integra and the Tribunal in the case of M/s Pimpri Chinchwad Municipal Corporation Vs Commissioner of Central Excise, Pune-I [2017 (12) TMI 167 - CESTAT MUMBAI] have observed that such charging of fees to agencies, a statutory levy for which municipal corporation had powers and such levies did not amount to any service, requiring payment of service tax - appeal dismissed - decided against Revenue. The Appellate Tribunal CESTAT ALLAHABAD ruled that fees charged by a Municipal Corporation for providing space to advertising agencies is not taxable to service tax. The decision was based on a previous case where it was observed that such fees were a statutory levy and did not require payment of service tax. The revenue's appeal was rejected.