2018 (7) TMI 95

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...., name boards, etc. The Department has issued two show-cause notices separately to M/s. Yespi Arts and M/s. Yespi Advertisers. 2. In respect of M/s. Yespi Arts, it was contended that they have not obtained registration and paid service tax on certain activities. A show-cause notice dated 21.10.2005 seeking to demand service tax of Rs. 2,79,578/- and Education Cess of Rs. 453/- was issued to M/s. Yespi Arts. The Assistant Collector vide Order-in-Original No.24/2006-ST dated 24.4.2006 has confirmed the demand. On an appeal filed by the appellant, the learned Commissioner (A) has passed Order-in-Appeal No.46/2007 dated 31.8.2007 confirming the Order-in-Original. 2.1 In respect of M/s. Yespi Advertisers, though they have obtained the service ....

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....ffect from 1.5.2006 under the category of "sale of space or time for advertisement". The appellants further submitted that this issue is no longer res integra and is settled in their favour by the following judgments. Prism Ads vs. CCE: 2006 (2) STR 501 (Tri.-Mum.) CCE vs. Team UPD Ltd.: 2006 (3) STR 602 (Tri.-Chen.) CCE vs. Azad Publications: 2004 (167) ELT 59 (Tri.-Del.) 3.1 The appellants also submitted that other activities like painting on walls, making of banners, name boards, etc., and making of flex/vinyl and fixing the same are in the nature of trading in goods and they are not involved in any advertisement agency services. The appellant does not render any service relating to making or preparation of an advertisement such a....

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....rala High Court has clearly held that the definition of 'advertising agency' has a wider connotation. The Hon'ble High Court held that as under: Paragrah "5. ..............We find the definition is an inclusive one, wide enough to cover anything independently referred to therein. Therefore, we are of the view that the making and sate of advertising materials for customers in the form of banner or hoarding or film-slide, etc. is 'advertisement' as defined under S. 65(2) of the Act. Paragrah 6. ................ We completely disagree with this view of the Tribunal because what is required in the definition clause to qualify an 'advertising agency' is, that, the commercial concern should be engaged in providing any service connected with m....

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.... the evidence available in the form of purchase bills, sales invoices and purchase order, which would clearly give the indication of the activity undertaken by the appellants. More so, because the appellants i.e., M/s. Yespi Arts as well as M/s. Yespi Advertisers have submitted that the investigations have included the charges collected towards rentals of hoardings, making sign boards on behalf of the customers, printing of banners for colleges, charges collected for writing on the inside of the building, repainting of wall paintings and name boards. It is to be seen whether such services could by any stretch of imagination be said to be services in relation to advertising services. The appellants have also submitted that the adjudicator ha....