TaxTMI 
TaxTMI 
2009 (9) TMI 1038
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion and therefore, the request for mailing of that issue on concessional rates cannot be acceded to. This was followed by another letter to the same effect on 21.11.2005. It may be mentioned here that Respondent No. 1 is the publisher of Reader's Digest and is publishing it under a licence from The Raeder's Digest Association Inc. in the USA since October 2003. Prior thereto it was being published in India by the R.D.I. Print and Publishing Ltd. 2. The reasons given by the appellant for the denial of concessional rate was that "the said booklet has been bound and printed separately and merely stapled to the Reader's Digest". Secondly, "the booklet did not conform to the conditions prescribed in the department's letter No. 22.15/2000 PO (Part-II) dated 09.10.2001". 3. The conditions in the letter dated 09.10.2001 were that for bringing out a multi-page Toyota advertisement in the December 2001 issue of Reader's Digest, the respondents had to ensure the following: (i) The advertisement had to be printed and bound along with other advertisement and articles in the magazine. (ii) The advertisement had to be numbered in running numerical sequence and will also ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....enclosed in or with a registered newspaper other than an extra supplement in terms of Section 9 of the Act. The quality and size of the paper was different from the main magazine. If the calendar had been transmitted separately through the Post Office network, the sender would have been paid a minimum of Rs. 4/- per article. However, respondent was seeking the concessional rate applicable to registered newspapers and this resulted in the appellant being denied its revenue. Reliance was also placed on the order dated 29.07.1982 passed by the Division Bench of this Court dismissing Civil Writ No. 607/1982 titled R.D.I. Print and Publishing Private Limited v. Union of India and Anr. That order was upheld by the Supreme Court by an order dated 25.11.1992 in Civil Appeal No. 3517/1984. 7. Mr. Nayyar, on the other hand, contends that the order dated 29.07.1982 of this Court was in a different context. There on facts it was found that if the advertisement pages were pulled out it did not detract from the value of the magazine and only amounted to the advertisement concerned not being distributed. However, it was clarified that "those pages which have an advertisement on both sides, and a....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Postal Circle in which such other place is situated. (a) The Postmaster - General, of the Postal Circle in which it is published or, as the case may be, posted and the period for which its registration or the last renewal thereof as the case may be, remains in force shall not have expired. (b) The full postage shall be prepaid unless the newspaper is exempted from prepayment of postage by a valid licence. (c) .... (d) .... (e) .... (f) .... (g) There shall be no paper or thing enclosed in or with any such, newspaper other than an extra supplement as specified in Section 9 of the Act. Note: Any newspaper in which a document of any of the following description is enclosed as a supplement shall be treated as a book packet: (i) an advertisement sheet printed for an advertiser and sent to the publisher of newspaper for distribution with it; (ii) an advertisement sheet with an order form attached a prospectus with an application form attached or a proposal or enquiry form; (iii) any document drawn up in the form of a direct personal communication to the recipient such as a printed circular in the form of a letter purporting to be addressed to a person by whom t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....deemed to be part of the newspaper only if "it consists wholly or in great part of matter like that of the newspaper and has the title and date of publication of the newspaper printed at the top of each page". 12. In order to deal with the possible confusion arising out of the above provisions, clarificatory circulars have been issued by the department. On 19.5.1999 the department announced a decision to withdraw the concessional tariff rates to magazine which did not contain pagination on all pages of the advertisement. On a representation being made by the Indian Newspaper Society, the department came out with the clarificatory letter dated 25/28.6.1999 clarifying "the concessional tariff would extend to all magazines/periodicals booked as registered newspapers even if some pages carrying advertisements are not numbered, provided, such advertisement sheets are accounted for in the sequential page numbering of the magazine". In the clarificatory letter an example to the following effect was given: For example, a magazine having 76 pages out of which 25 pages are devoted to advertisements and these pages are not numbered. It is not necessary to insist on numbering of such page ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... box which reads as under: TOYOTA Dream Car Art Contest This issue of Reader's Digest carries Toyota's 28-page advertisement, featuring 12 superb drawings from the winners of the 2004 TOYOTA Dream Car Art Contest. The advertisement is also being simultaneously published by a large number of editions of The Digest in Asia and Europe. See pages 55 to 82." What is significant in the above insertion is that it clearly tells the reader on the first page of the issue in a separate box that there is a 28-page advertisement which is at pages 55 to 82. If the advertisement was therefore to be detached from the issue, a subscriber or purchaser would certainly raise a query as to why it was not supplied as assured in page 1 of the issue. This clearly falls in the category envisaged by the Division Bench of this Court in the order dated 29.7.1982 referred to hereinbefore. It may be recalled that the Division Bench observed that advertisements of this nature would not offend Note (i) below Clause 132 of the Post Office Guide (Corresponding to Clause 139 of the present Guide). 16. Then we turn to the impugned advertisement itself. The first page of the advertisement indicates the pa....