Service tax on print media advertisement space sale clarified as non-taxable; waiver of pre-deposit and stay of recovery granted.

Sale of space for advertisements in print media is clarified as not attracting service tax, while commission earned by an advertising agency remains taxable where already discharged by the assessee. On that basis, the dispute over tax, interest and penalties on amounts paid to print media for allotted advertisement space was considered suitable for interim protection, and waiver of pre-deposit was granted with recovery stayed pending appeal.

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Issues: Whether the demand of service tax, interest and penalties on the amount paid to print media for space allotted for advertisements warranted pre-deposit, and whether recovery should be stayed pending appeal.

Analysis: The demand related to the category of Advertising Agency Service for the period April 2006 to February 2007. The order notes the clarification that sale of space for advertisement in print media does not attract service tax, while commission earned by an advertising agency remains taxable and had already been paid by the appellant. On that basis, the case was found fit for interim protection.

Outcome: Waiver of pre-deposit was granted and recovery of service tax, interest and penalties was stayed.

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