2018 (5) TMI 1468

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....ons Ltd. for the period February 2008, it came to light that M/s. Sovereign Media Marketing (P) Ltd. (respondents herein) have canvassed advertisements for Maalai Malar (published by Malar), Daily Thanthi and Rani weekly upto 31.3.2005 and that Malar Publications have taken over the business of respondents herein with effect from1.4.2005. The department was of the view that the commission received for canvassing such advertisement falls within the ambit of business auxiliary service and that the respondents are liable to pay service tax with effect from 1.7.2003. Show cause notice was issued proposing to demand service tax along with interest and for imposing penalties. After due process of law, the original authority held the activity of c....

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....No.332/4/2008-TRU dated 5.5.2008, it has been clarified that the commission earned by the advertisement agency is leviable to service tax. The activity of canvassing for advertisement in the publications Daily Thanthi, Rani Weekly undertaken by the respondent are nothing but promotion or marketing of advertisement service and rightly falls under BAS. The Commissioner / retainer fee received from the client during the period 1.7.2003 to 31.3.2005, thus is subject to levy of service tax. The Commissioner (Appeals) has relied upon the stay order No. 566/2010 dated 8.11.2010 passed by the Tribunal in the case of M/s. Malar Publications to conclude that the services are not subject to levy of service tax. The said case has attained finality and ....

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....R 330 wherein the issue of selling of space was considered and held to be in favour of the assessee. Thus, since the Tribunal has set aside the demand on the ground of limitation for the subsequent period, the same could be applicable to the period in the present case also. He submitted that the entire issue is one of interpretation of law and no malafide can be attributed on the respondent. 5. Heard both sides. 6. The issue whether the services are subject to levy of service tax has been considered in the case of Malar Publications vide the above stated final order wherein it is held that the said activities fall within BAS. However, we find that the Tribunal for the subsequent period has set aside the demand on the ground of limitation.....