TaxTMI 
TaxTMI 
2018 (11) TMI 1289
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....ctronic media. In respect of advertisements published in the print media, the Respondent paid the service tax on the 15% of the gross value of the bills raised to their clients and in case of advertisements broadcasted in the electronic media, they used to pay service tax on the total amount billed to their clients. But after July, 2006, the Respondent raised debit notes to their clients to realize the amounts charged to them by the electronic media. It was also noticed that the Respondent availed Cenvat Credit of service tax to the extent of Rs. 14,620/- along with Education Cess of Rs. 301/- and Higher Education Cess of Rs. 10/- on the basis of documents containing their office address at Cuttack, which was found to be irregular. Accordin....
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....hing, advertisements were not taxable and sale of space and time for advertisements by the electronic media was covered under a separate services, namely, broadcasting service and electronic media transmitting the advertisement of the clients of the assessee duly discharged their service tax liability. He submits that the ld.Adjudicating Authority has observed that the Respondent-Assessee paid the service tax from August, 2006 on the commission received for providing advertisements service. It was held by the ld.Adjudicating Authority that the service tax payable on the amount received and not the amount billed, but from the Order-in-Original, it appears that in case of print media, the service tax was paid on the gross billed amount of 200....
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....able service as defined under the Act, is the gross amount charged by the service provider in providing the taxable service. As the service provided by the Respondent is only for arrangement the space and time in print or electronic media, the amount received for this activity will only amount to the value of the taxable service. The amount charged by the media for displaying or broadcasting , the advertisement has no nexus with the service being provided by the Respondent ; that this is an amount on which demand was raised and the same has been held to be constituted the value of taxable service. Accordingly, no reconciliation as suggested in the appeal filed by the Department is unwarranted. Regarding nonimposition of penalty in respect o....
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....to be genuine mistake and is not serious breach of the Cenvat Credit Rules. Accordingly, we do not find merit in the appeal of the Department on this count. 8. Regarding the 1st issue, we find that the clarification was issued vide F.No.332/4/2008-TRU dated 05.05.2008 regarding sale of space for advertisement in print media does not attract service tax. The amount paid by the Respondent to the print media related to sale space advertisement in the print media. The said amount which was reimbursed by the respondent, was not chargeable to service tax in terms of aforesaid clarification issued by the Board. In the said letter, it was also clarified that the commission earned by way of facilitating sale of space in print media is leviable to....
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....nts. The Adjudicating Authority found that they issued debit notes on their clients for reimbursement of the bills raised by the electronic media and also issued separate bill to their clients for their service charge. It emerges from the above fact that the amount charged by the electronic media, relates to sale of space and time for advertisement to the electronic media. The sale of advertising space and time is a separate taxable service, which came to be service net on 01.05.2006. The person providing the said service was liable to pay service tax on the taxable value of such service. The Respondent acts as an intermediary between the clients and electronic media and therefore, on the basis of analogy adopted in TRU letter F.No.332/4/20....