Tribunal rules selling ad space in print media not subject to Renting of Immovable Property Service Tax

The Tribunal upheld the respondent's argument that services provided by selling space for advertisement in print media do not fall under Renting of Immovable Property Service for Service Tax classification. Additionally, the Tribunal found that since the respondent had paid the Service Tax and interest before the show cause notice, penalty imposition was not justified, citing relevant precedents. As a result, the Tribunal dismissed the Department's appeal and affirmed the impugned order in full.

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Issues: Classification of services under Service Tax department, Penalty imposition

Classification of services under Service Tax department:
The appeal was filed by the Department against the Order-in-Original No. 199/2013 dated 13/12/2013. The respondent, registered with the Service Tax department since November 2008, was subjected to a demand of Rs. 1,10,550 due to a dispute regarding the classification of services. The Commissioner categorized the services under Renting of Immovable Property Service, while the respondent argued that the services fell under Sale of Space in print media, which is non-taxable. The Tribunal concurred with the respondent's argument, stating that selling space for advertisement in print media does not constitute renting of immovable property. Consequently, the Tribunal upheld the impugned order on this issue.

Penalty imposition:
The Department's second grievance pertained to the imposition of a penalty. It was noted that the respondent had already paid the Service Tax along with interest prior to the issuance of the show cause notice. Citing precedents such as Commissioner v/s Rashtriya Ispat Nigam Ltd., CCE v/s Gaurav Mercantiles Ltd., and CCE v/s S.B. Packaging, it was argued that in such cases, where the tax and interest have been paid before the notice, penalty is not leviable. The Tribunal, in alignment with the established legal principles, found no grounds to interfere with the impugned order on this issue as well, thereby dismissing the Department's appeal.

In conclusion, the Tribunal dismissed the Department's appeal, affirming the impugned order in its entirety.

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