TaxTMI 
TaxTMI 
2019 (4) TMI 1687
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....newspapers. In the process of getting the advertisement for printing in the print media, the appellant also receives text of the advertisement, they estimate the required space in the newspaper and thereafter negotiate the price with the advertisers and book the space in daily newspaper such as Rajasthan Patrika and Dainik Bhaskar on commission basis. The newspaper agencies for this job of canvassing and contacting potential advertisers gives a commission of about 15% of the fixed rates of the advertisement charges. This amount of commission which is about 15% of total charges paid by the advertisers to the newspapers becomes remuneration for the appellant. As the business of advertising is very competitive, the appellant out of the 15% com....
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....e learned advocate that the department vide its circular No. 96/7/2007-ST dated 23.08.2007 has clarified that merely canvassing advertisement for publishing on commission basis is not classifiable under taxable service namely advertisement agency service as provided under section 65 (105)(e) and it has further been mentioned in the clarification that such services are more appropriately classifiable under the category of Business Auxiliary Services under section 65 (105)(zzb). It has been contention of the learned advocate that since the demand in this case has been raised under the "Advertising agency services" which is not a proper classification of the activity undertaken by the appellant and therefore, the entire Service Tax demand is w....
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.... and sale price is the profit / value of services the dealer/ retailer provides. Similar position is in the instant matter. The print media has fixed a price i.e. 85% of the price fixed for advertisement for dealers and the dealer is free to pass on any amount out of the 15%, the margin of the dealer and thus, the amount retained by the appellant i.e. the difference between 15% commission allowed by print media (-) the amount passed on to the advertisers would be the correct value for the services rendered by the dealer (appellant) to the advertiser. Thus, the value taken by the department for the purpose of determining the liability is not correct and proper. Furthermore, the value taken by the department for the purpose of charging tax ha....
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....basis will not fall under the category of advertisement agency service and since the Show cause notice has demanded the Service Tax under the category of "Advertising agency services" falling under section 65 (105)(e) and therefore we feel that ab initio demand of service tax under the category of "Advertising agency services" is without jurisdiction and the Department has wrongly classified the activity of the appellant. 7. It is also a matter of record that the appellant himself have approached the department explaining the type of activity undertaken by him and has asked their advice as to whether he falls under the category of "Advertising agency services" or not. Only after the department has clarified that the activity fall under th....
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....would draw our attention to the fact that the issue is decided in the following cases : (1) Kerala Publicity Bureau [2007 (10) STT 457 (CESTAT-Bang.) = 2008 (9) S.T.R. 101 (Tri.-Bangalore)] (2) Euro RSCG Advertising Ltd. - [2008 (16) STT 232 (CESTAT-Bang.)] = 2007 (7) S.T.R. 277 (Tri.) (3) Marketing Consultants & Agencies Ltd. - [2007 (6) STT 318 (CESTAT-Bang.) = 2006 (4) S.T.R. 136 (Tri.)] All passed by the same Bench, in an identical issue wherein the Bench had held in favour of the assessees. 5. Learned departmental representative reiterates the findings of the lower authorities and submits that they are liable to pay the service tax as confirmed. 6. After hearing both sides for some time on the stay petitions, we find ....
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....scounts for volume of business or advance payments. The business they provide to the print media, for which they get the incentive/discount, is the service they provide to their client i.e. the business they provide to the print media, for which they get the incentive/discount, is the service they provide to their client i.e. the print media. This service has been held to be a taxable service under the category of "Business Auxiliary Service" in the impugned order. It is therefore apparent that for different services rendered, any assessee could have different seats of clients." 8. It can be seen from the above reproduced findings that the issue regarding whether discounts/incentives given to the appellant as an advertising agency would ....