TaxTMI 
TaxTMI 
2007 (11) TMI 180
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed in providing services connected with making preparation, display and exhibition of advertisements and also providing consultancy in advertisements. During the scrutiny of the records of M/s. Mangalam Cement Ltd., it was noticed that, from 1-1-2001 to 30-9-2003 the present appellant had received an amount of Rs.24,76,417/- on account of advertisement. The amount was paid for rendering services of advertising the products of the said company. The appellant had not obtained registration in respect of the said taxable service, Advertising Agency'. In response to the demand, the appellant did not file any reply and the adjudicating authority came to a finding that the appellant had rendered service of advertising to M/s. Mangalam Cement L....
X X X X Extracts X X X X
X X X X Extracts X X X X
....galam Cement Ltd. and was paid on sq. ft. basis for the labour work done by him. It was submitted that, the words 'Dhanshree Publicity' were not Conclusive for holding that the appellant was providing services of 'advertising agency', because, in reality, he was only painting the walls at the behest of the said company with the designs and material provided by it for the site of its dealers and stockist. It was submitted that, the Appellate Commissioner did not consider the relevant records showing that the appellant was only a painter. He submitted that even if the matter painted on the wall by the appellant amounted to an advertisement, the appellant did not become an 'advertising agency'. He relied upon the Circul....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Department, on the other hand, argued that, the name of the appellant 'Dhanshree Publicity' was suggestive of the work done by it. He submitted that business name 'Dhanshree Publicity', adopted by the appellant, which was also written on the bills issued by the appellant for the work done indicated the nature of services provided by the appellant, which fell under the category of 'advertising agency'. He submitted that the appellant did not co-operate before the adjudicating authority and he cannot get a premium for his silence and non-co-operation. He submitted that, keeping in view the ingredients of the taxable service of 'advertising agency', as defined, and also the meaning of the word 'advertis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ould prepare the painting of the advertisement which was to be displayed. He submitted that, any different view would result in redundancy of the provisions. 7. The facts are in a narrow compass. The material on record establishes that the appellant was the sole proprietor of Dhanshree Publicity. If one is to go by mere business name, then there would hardly be anything for the appellant to argue, because, the word 'Publicity' imperiously adopted by the appellant would suggest the activities which have direct relations to advertising. However, in the facts of this case, it appears that the pompous business name adopted by the appellant did not indicate the reality of the business that the appellant was only a sole-proprietor, who w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tise of painting will not drag the artist into the net of taxable service of 'advertising agent'. Therefore, something more is required than mere earning of livelihood by use of the artistic talent of painting by the person who is engaged as the painter. The Revenue appears to have been well aware of this aspect way back in the year 1999 when Trade Notice dated 16-9-1999 was issued by the Calcutta Commissionerate, in which it was clarified in paragraph 2 as under: "2. The matter has been examined by the Ministry of Finance, Department of Revenue (Tax Research Unit). It has been decided that in the case of persons, who are printing an publishing telephone directories, Yellow pages or business dir....