2017 (12) TMI 167

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.... fees/charges from various bidder(persons) for granting permission to use space on pavement/footpath, road dividers, parks etc for putting up billboards, kiosks etc and display of advertisement in other form w.e.f 1-5-2006. The show cause notice was issued wherein it was contended that these activities are taxable under the category of sale of space or time for advertisement service as defined under sub clause (zzzm) of clause 105 of Section 65 of the Finance Act, 1994. It was alleged that PCMC neither obtained registration nor discharged service tax liability under the said category. Accordingly, demand of service tax on such activity amounting to Rs. 1,17,95,397/- for the period 2006-07 to 2010-11 was raised. The adjudicating authority co....

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....he activity is land, building is provided by PCMC to the advertising agency on rent for display of advertisement by the said advertising agency. He submits that at least in case of first category no service tax is chargeable. He further submits that demand is time bar for the reason that appellant was of bonafide belief on the basis of litigation in Hon'ble Gujarat High court decision in case of Selvel Media Services of Private Limited(Supra) that the service in question is not taxable therefore there is no suppression of facts hence longer period of demand was also not invokable. In view of the above submission he also submits that penalty imposed was also wrong. 3. On the other hand, Ms. P.V. Shekhar, Ld. Joint Commissioner(A.R.) appeari....

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....e to levy of service tax under the aforesaid provisions. In the present case there are two categories of activities; one-PCMC is providing their own property such as land, building to the advertising agency for advertisement purpose, in this case activity clearly covered under the aforesaid provisions, therefore whatever space of land, building was provided by PCMC to the advertising agency it is liable for service tax. However in a case where PCMC is charging fees/taxes by giving permission for providing space by private parties to advertising agency is a statutory levy for which PCMC has got power from the provisions under the constitution. Therefore such levies will not amount to provision of any service. As regard the fees and taxes col....