TaxTMI 
TaxTMI 
2006 (10) TMI 1
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....; No. 2424/2-10-18/99 Director Tourism Uttaranchal, Dehradun Ajanta Fabricators, Ajanta House, Ganga Vihar, Haridwar Road, Rishikesh. D.Dun: Dated 31-3-2001 Sub: Preparation and fixing of signages in Kumaon Region. Sir, &nb....
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....s of size 50x50x6mm and two angle stakes of same size for support and two or three channel leg pole of size l00x50mm of 1.75 mts. height above ground level, exclusive of board size, grouted deep below ground at 0.60 mts. with CC in the ratio of 1:4:6 gloss synthetic enamel paint & important matter shall be laminated in Engineer grade Refractive sheets. (i) 2.79Mx1.80M 14 7250/- 1,01,500/- (ii) 3.60Mx2.40M 20 11500/- 2,30,000/- Total 9,00,000/- &....
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....p; Deputy Director Tourism, ....
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....cted against those orders. 3. The finding in the order is that Section 65 of the Finance Act 1994 has defined "advertising agency" as "any commercial concern engaged in providing any service connected with the making, preparation, display or exhibition & advertisement" and that the preparation and installation of signages by the appellant are within the definition of taxable service. The orders have rejected the appellant's contention that its service is not advertising service as explained in Circular No. 341-43/96-TRU dated 13-1-96 and as held in this Tribunal's decision the case of Star Neon Sign. v. CCE, Chandigarh [2006 (2) S.T.R. 588 (T) = 2002 E.L.T. 770 (Tri - Del)] 4. The submission of the learned consultant of the appellant is that Board's circular has clarified that the service of an advertising agency is in the nature of designing, visualizing, conceptualizing etc. of advertisements, in contradistinction to the physical activity of painting and writing advertising materials or erecting hoardings. It is being pointed out that to the same effect is the decision of the Tribunal in the case of Star Neon Sign case. The learned consultant has also relied on the decision....
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....iodicals, as such this activity shall not attract service tax. However, if these persons also undertake any activity relating to making or preparation of an advertisement, such as designing, visualizing, conceptualizing etc., then they will be liable to pay service tax on charges made thereon." The submission is that the above clarification leaves no room for doubt that eking or preparation of advertisement' means activities like designing, visualizing, conceptualizing etc. and not the physical activity (manual labour) of painting or writing of the advertising material. 9. When an almost identical issue came before this Tribunal in the case of Star Neon Sign, the Bench the Tribunal hold as under:- "We find that the term 'advertising agency' is defined in the Act and as per the definition the advertising agency is to mean any commercial concern engaged in providing any service connecting with the making, preparation, display or exhibition of advertising and includes advertising consultant. The appellants are only manufacturing the sign boards as per the requirements of their customers. Such an activity cannot be held to be advertising agency as the appellants are not render....