2008 (1) TMI 188

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..... Peeran, Member(J)]-1. The appellant is aggrieved with Order-in-Appeal No.73/2007 CE dated 30.4.2007 by which the Commissioner (A) has confirmed the Order-in-Original No.22/IVNIII/2006-07 dated 23.6.2006 passed by the Assistant Commissioner, Service Tax Division-III. 2. The appellant was rendering services under the category of "Advertising Agency" and were registered and discharging Service T....

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....ey contend that an amount of Rs.8,44,100/- will not be liable to be taxed on this account. With regard to non-receipt of Service Tax from their parties and it was shown as due in the returns, it cannot be subjected to Service Tax. Therefore, an amount of Rs.3,15,214/- is not liable to be confirmed. In this regard, ruling rendered in Prachar Communications Ltd. v. CCE, Mumbai - 2006 (2) STR 492 is ....

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....client only is liable to service tax and not amounts received from others. 3.3 The learned Counsel submits that demands based on balance sheet is also not sustainable as held in Paro Food Products Vs. CCE - 2005 (184) ELT 50 (Tri.-Bang.). 3.4 He submits that there has to be a client nexus between the client and the service provider as held in the case of BBR (India) Limited Vs. CCE - 2006 (4....

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....hrough the findings and prays for confirming the same. 5. We have carefully considered the submissions and gone through the records. It is seen from the impugned order that the assessee had relied on the instructions given in Circular dated 31.10.1996 on the ground that they are not liable to pay Service Tax on the amounts received from the main advertising agency. This clear instruction clarif....