2017 (8) TMI 1117

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....ning the theatre from 1.1.2002. In addition to the above activity, the appellant also rents the space for display of 'advertisement at various places of the theatre complex in the form of hoardings, neon signs, cinema tickets etc. The department was of the view that the activities undertaken by the appellant would fall under the category of 'Advertisement Agency Service' and that were liable to pay service tax for the said services for the period from 2001-2007 (upto 30.4.2006). A show cause notice dated 22.2.2007 was issued alleging the above and proposing to demand service tax along with interest and for imposing penalty. After due process of law, the original authority confirmed the demand along with interest and imposed pena....

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....ities undertaken by the appellant would fall within the definition and therefore they are liable to pay the service tax. 5. Heard both sides. 6. The records reveal the nature of the activities undertaken by the appellant. The appellants contend that they are not engaged in designing or developing the content of the advertisement. Their activity is allotting time slot and space within the theatre complex without any creative inputs for making or preparing advertisements. For better appreciation, the definition of 'Advertising Agency' is reproduced as under:- "65(3) 'advertising agency' means any person engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includ....

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....The decision as to how and in what format the advertisement should be, how it should be projected at what point of time it should be flashed in which areas it should be exhibited or the manner in which it should be drafted and exhibited has got nothing to do with the press media or electronic media. That would be the task of 'advertising agency' alone. Therefore, when we consider the situation where a client goes to the press media and asks for flashing of the advertisement and such advertisement is flashed in the media, this cannot be deemed to be a service provided by that media to such a client. Similarly, when a person approaches the electronic media and flashes an advertisement on the radio or television, as the case may be, th....

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....As such, the activities amount to sale of space and not as regards advertisement. "15. Our above view also gets support from the fact that another head of "sale of space or time for advertisement and sponsorship services stands created for the purposes of service" tax w.e.f. 1-5-06. However, the taxable services in relation to sponsorship services specifically excluded sponsorship of sport events. As such, we find that a subsequent entry having been enacted covering the activity without any change of the existing entry, has to be interpreted as if the earlier existing entry did not cover the subsequently created entry. If the subsequent entry was covered by the earlier entry, there was no reason or scope to create the present entry especia....