2014 (11) TMI 659

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....eum products. The applicant engaged the services of four advertising agencies for preparing the advertisements for their products. The advertising agencies further engaged the services of Times Global Broadcasting Co. Ltd. for broadcasting the advertisements. The broadcasting company paid service tax in respect of taxable service provided by them and recovered the amounts from the advertising agencies. The advertising agency also raised invoices in favour of the applicant. The appellant availed credit in respect of the service tax paid on the taxable service of broadcasting done by Times Global Broadcasting Co. Ltd. The Revenue issued show cause notice for denial of such credit. The adjudicating authority denied the credit on the ground tha....

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....COMMR/M-II/2013-14 dated 30.9.2013 dropped the proceedings by holding that Broadcasting Services availed by the appellant is an input service and the appellant has borne the tax incidence of such services availed; the service of advertising agency and broadcasting service are separate; the invoices have been raised on the appellant charging Service Tax; the appellant had borne the incidence of service tax and therefore, they are rightly entitled for benefit of credit of Service Tax paid. This order, according to the Counsel, has been accepted by the department as they have not challenged the same. In view of the above, the impugned order holding a contrary view is clearly not sustainable in law. 5. The Revenue relied upon the findings of t....

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.... ready reference, the relevant portion of the Board Circular is reproduced below:-                "4. It is further to be clarified that in relation to advertising agency, the service tax is to be computed on the gross amount charged by the advertising agency from the client for services in relation to advertisements. This would, no doubt, include the gross amount charged by the agency from the client for making or preparing the advertisement material, irrespective of the fact that the advertising agency directly undertakes the making or preparation of advertisement or gets it done through another person. However, the amount paid, excluding their own commission, by the a....