TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Flex Board Printing Not Taxable; Appeal Dismissed; Service Tax Liability Overturned</h1> The Tribunal upheld the Commissioner (Appeals) decision, ruling that printing flex boards based on client-supplied content does not constitute a taxable ... Printing and preparation of flex boards and subsequent delivery and mounting it in the required premises - whether the activity amounts to taxable activity under the category of advertising agency service or not? - Held that: - printing of flex boards based on the contents supplied by the customer will not be covered by the scope of advertising agency service - the respondent at no stage is involved with work of conceptualizing, visualizing and creating advertisement which is essential and basic ingredient to cover the activity under advertising agency service for tax liability - appeal dismissed - decided against Revenue. Issues:1. Whether the printing and preparation of flex boards, delivery, and mounting by the Respondent constitutes a taxable activity under the advertising agency service.2. Whether the decision of the Commissioner (Appeals) correctly set aside the original order and allowed the appeal filed by the Respondent.Analysis:1. The Revenue appealed against the Commissioner (Appeals) order, contending that the printing and preparation of flex boards by the Respondent, along with subsequent delivery and mounting, fall under the taxable activity of advertising agency service. The Revenue imposed a service tax liability on the Respondent, which was confirmed along with penalties under the Finance Act, 1994. However, the Commissioner (Appeals) set aside the original order and allowed the appeal filed by the Respondent. The Revenue challenged this decision on appeal. The Ld. AR argued that the Respondent's activities fall under the tax entry for advertising agency, while the Ld. Counsel for the Respondent emphasized that the Respondent is not involved in conceptualizing or creating designs for advertising, but merely prints flex boards based on client specifications.2. The Tribunal analyzed the facts and evidence presented. It was noted that the Respondent engaged in flex printing and vinyl printing as per customer specifications, including installation services. The Tribunal agreed with the Commissioner (Appeals) that printing flex boards based on customer-supplied content does not constitute an activity falling under the scope of advertising agency service for tax liability. The Tribunal referenced previous decisions such as Ajanta Fabrication and Market Chase advertising, which concluded that creating hoardings, signboards, and signages based on client designs and content does not qualify for taxation under advertising agency services. The Revenue failed to provide evidence supporting their claim that the Respondent was involved in creating advertising content. Consequently, the Tribunal upheld the findings of the impugned order and dismissed the Revenue's appeal.In conclusion, the Tribunal affirmed that the printing of flex boards based on client-supplied content does not fall under the tax entry for advertising agency services. The decision of the Commissioner (Appeals) to set aside the original order and allow the Respondent's appeal was upheld, and the Revenue's appeal was dismissed.
TaxTMI 
TaxTMI 
