2017 (8) TMI 548

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....sale of space of time or advertisement service'. 2.1. The first head of demand is on the income generated on account of grant of right for display advertisement to M/s. Green Thumb Innovators Private Limited. Learned Counsel argued that grant of rights for display advertisement on Bus Shelter does not amount to sale of space for advertisement. Ld. Counsel further argued that agreement have been made with M/s. Lokmat Newspapers Pvt. Ltd., whereby the Star Buses of Nagpur Municipal Corporation would be used for display of advertisement by M/s. Lokmat Newspapers Pvt. Ltd. Learned Counsel argued that they merely amounted the royalty. In view of this inherent rights to collect taxes and duties for maintaining the city infrastructure and bas....

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....nafide opinion that no taxes applicable on the taxes and royalty collected by them against the grant of rights. For this purpose he relied on the decision of Tribunal in the case of Surat Municipal Corporation Vs. Commissioner of Central Excise, Surat - 2006 (4) STR 44 (Tri.-Del.). 3. Learned AR relied on the impugned order. Learned AR also relied on the decision of Hon'ble High court of Kerala in the case of Kothamangalam Municipality Vs. Addl. C.C.E. & S.T., Kochi - 2014 (36) STR 11 (Ker.) to assert that the amount collected are not in the nature of tax but charges for permitting advertisement. 4. We have gone through the rival arguments. We find that for the purpose of permitting M/s. Green Thumb Innovators Private Limited to use this ....

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....hmedabad - 2016 (45) STR 166 (Guj.), it has been clearly held as follows: "13. The question, therefore, that is required to be posed and answered is whether AMC is providing any service to any person in relation to sale of space for advertisement by providing space for display in the facts of the case. Admittedly, in the facts of the present case, the property on which the structure is erected in the form of billboard or hoarding is not owned by AMC. AMC is only granting written permission after ensuring compliance with the requisite regulatory requirements for a fee. AMC is not rendering any service to the petitioner. It may be that in a wider sense, the regulatory function of AMC could be termed to be a public service for ensuring safety....