AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (8) TMI 697
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....shorts). During an audit of the appellant it was noticed by the Department that the appellant has wrongly availed the cenvat credit in respect of inputs and input services while constructing bus Queue Shelters, Public utilities such as toilet blocks, tree guards, railings, centers verges, pole kiosks, overhead gantries etc. under various agreements that various government authorities as that of the Municipal Corporation of Delhi (in short MCD) it was revealed that the said cenvat credit has been utilized by the appellant for discharging the service tax liability under service category of advertising agencies services. The another short coming noticed by the Department was that the appellant has not paid the service tax on the payments recei....
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....rayed to be upheld. With respect to the demand of service tax, it has been submitted that the authorities below have wrongly held the appellant to be a sub contractor while fastening upon him the said liability. It is also submitted that the CBEC Circular no. 96/7/2007-ST dated 23.08.2007 has wrongly been relied upon retrospectively. The ld. Advocate has relied upon Suchitra Components Ltd. Vs. Commissioner Of Central Excise, Guntur 2007 (208) ELT 321 (S.C.) to impress upon that only beneficial circulars can be given retrospective effect. The impugned circular being oppressive in nature, the authorities below are alleged to have commit an error while applying it retrospectively. The order confirming the demand of service tax with appropriat....
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....uzuki Ltd. Vs. CCE, Delhi-Iii, 2009(240) ELT 641 (SC) hence we do not find any infirmity qua those findings the findings allowing the cenvat credit to the appellant are hereby confirmed. 6. With respect to the second issue of discharging tax liability as that of advertising agency services, it is an admitted case of the appellant that after entering into a contract with the government agency for constructing the bus queue shelters/ utility service as that of toilet blocks etc, and to use the said premises for show casing advertisements, the appellant entered into subsequent contracts with M/s. Prime Site and M/s. Graphis Ads both happened to be advertising agencies, to arrange for the advertisements to be so published/ displayed. The cas....
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....3) of the Act to mean any person engaged in providing any service connected with the making preparation display or exhibition of advertising and that of the advertisement consultant. These definitions make it clear that scope of service which is included in the tax net extends not only to the person involved in making or preparing of advertisements but also includes the service by the person involved in display or exhibition of the advertisement. 9. From the admitted agreement of the appellant it is clear that the appellant had contracted with the M/s. Prime Site and M/s. Graphis Ads for the making or preparation of the advertisements which were to be displayed by the appellant at the site to be constructed by him under an agreement in h....
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....ellant for which he has taken an amount, the appellant is equally a service provider to that extent as already held above and the amount received is the gross amount for calculating the service tax liability of the appellant. We accordingly, are of the opinion that the adjudicating authority below have rightly confirmed the said demand. We find no infirmity in the order to that extent accordingly we hereby confirm the demand. Even if the circular of 23.08.2007 is not taken into consideration the above discussion still holds good. The argument of the appellant to that effect is, therefore not sustainable. The authority relied upon is also not applicable for the said reason. 11. Now coming to the aspect of levy of the proportionate interes....