TaxTMI 
TaxTMI 
2005 (7) TMI 6
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....rposes, the appellant was hiring the space available in Government buses, etc. and readymade advertisements were being received by them from Government departments, which were displayed on specified buses. The said work of Government departments of displaying various advertisements were being undertaken by the appellants through a DAVP. During the period 1997-98 to 2001-2002, the appellants provided such advertising services to the tune of Rs. 9,87,39,667/- but did not discharge service tax of Rs. 49,36,984/- @ 5%. It may be mentioned here that the appellant was also undertaking independent advertising services and was paying duty on the same and quarterly returns ST-3 was also being filed by them. However, the advertising services provided....
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....sioner (Appeals). Hence the present appeal. 4.We have heard Shri M.H. Patil, ld. Advocate and Shri A.K. Kaushal, ld. SDR appearing for the Revenue. 5.The appellant's main contention is that the activity of hiring bus space and then displaying the advertising material received from the Government department does not come within the purview of term 'advertisement' and such display is not covered under the definition of term 'taxable services'. It is admitted that the appellants were first booking space in Government buses and then were contacting the Government department for placing advertisements. Sometimes readymade advertising material was received by them for such display and in some of the cases, the same was prepared by the appellant....
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....ing agency means any commercial concern engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant. It is, thus, noticed that the scope of the service which is included in the tax net extends not only to any service connected with making, preparation of advertisement but also includes any service connected with the display or exhibition of advertisements. Inasmuch as, admittedly the appellants are a commercial agency making profit out of the activity of display of advertisements on behalf of the Government, the same would be covered by the definition of advertising agency. The fact that such advertisements were public interest advertisements and were....
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....smuch as in that case admittedly the appellant was only preparing sign boards at the behest of the customers. Such service was held as no advertising services. On the other hand, reliance by the ld. DR on the Tribunal's decision in the case of Commissioner of Central Excise, Ludhiana-III v. Gypsy Advertising Co., reported in 2004 (171) E.L.T. 271 (Tri.-Del) fully applies to the fact of the instant case. 7.In view of the foregoing, we are of the view that the services rendered by the appellants to various State/Central Government departments amount to advertisements and the appellants are required to pay service tax on the same. 8.It has also been contended before us that the demand of duty is barred by limitation inasmuch as the show caus....
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....at the service being provided by them did not attract any service tax. In view of the foregoing, we do not find any infirmity in the Revenue's action of invoking longer period of limitation. 10.The appellants have also contended that it is the entire gross amount charged by them from their client which has been taken into consideration for calculating the amount of service tax. Attention has been drawn to Para 4 of the clarification issued by the Ministry vide its circular referred above. For better appreciation, we re-produce the Para 4 of the said notification. "It is further to be clarified that in relation to advertising agency, the service tax is to he computed on the gross amount charged by the advertising agency from the client for....