TaxTMI 
TaxTMI 
2023 (9) TMI 723
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.... are that on investigation by the officers of Central Excise, it appeared that the appellant was rendering advertisement agency services by placing advertisement boards in the buses of leading consumer brands. Advertisement charges were collected by the appellant from the clients as evident from their balance sheets wherein the receipt were accounted as 'Non-Operational Revenue'. Scrutiny of the documents revealed that during the period from January 2002 to June 2006, the appellant had collected Rs.1,28,64,245/- as advertisement income from various parties. Hence a Show Cause Notice dated 22.9.2006 was issued to the appellant demanding service tax of Rs.11,81,098/- for the period from January 2002 to June 2006 with interest and penalties. A....
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....ting authority that they are estimating the space for displaying the advertisement, forming the lay out and that they decide the nature, size of the presentation of its content, apart from fixing the price are very vague and misplaced. It is quite common that space sellers identify the extent of the area and negotiate the price expected for it. This activity cannot be said to be in relation to advertisement 'in any manner' and instead was only in relation to sale of space. Since, the entire issue is a question of interpretation of the classification of the service as could be seen from the circulars, the question of invoking the longer time period for issue of Show Cause Notice is legally untenable. She relied on the following case laws to ....
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....t to advertisers for the purpose of displaying advertisement of their choice. Their clients make best use of the space by displaying advertisement boards made according to their convenience, taste, choice, design etc. within the space allotted to them. The conditions imposed on their clients were: - 1. the advertisement charges for carrying the display boards for advertisement should be paid in advance; 2. the display boards should be of a given size 3. the display boards should be fitted with bolts, nuts in the respective depots without causing any damage to the buses; 4. the display boards should be such that they do not have any radiating effect on the eyes of the driver of buses or other drivers on th....
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....able on the advertisement booked for yellow pages. The reasoning given therein is also applicable to this case. It was clarified that if persons undertake any activity relating to making or preparation of an advertisement, such as designing, visualizing, conceptualizing etc., only then will they be liable to pay service tax on the charges made thereon under "advertisement agency" service. The letter was considered by the Coordinate Bench of the Tribunal in Contact Advertising Agency v. Commissioner [2001 (132) E.L.T. 245 (Tribunal)], which held:- "4. We have considered the submissions of both the sides. . . . . The Ministry under letter dated 16-8-1999 has clarified as under: "I am directed to state that doubts have been r....
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....acted on advertising agencies which are providing service to advertisers by conceptualising, designing or preparing advertisements. Printing on electronic media are excluded from the levy of service tax as they do not provide any service to the advertisers, but are merely selling space or time for the exhibition of advertisements. 3. In the case of persons who are printing and publishing telephone directories, yellow pages or business directories, their activity is essentially of printing a readymade advertisements from the advertisers and publishing the same in the directory. Their activities are similar to those carried out by newspapers or periodicals. As such, this activity shall not attract service tax. However, if these perso....
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....ore Delhi Tribunal in the case of Commissioner of Central Excise, Ludhiana v. Azad Publications reported in 2004 (167) E.L.T. 59 (Tri. - Del.) wherein Hon'ble Justice K.K. Usha, President, CESTAT, held as under : "Service Tax - Advertising Agency - Respondents permitting display of advertisement on its site and raising bills for realizing rental charges - Such activity not bring the respondents under the definition of advertising agency - Section 65(2) of Finance Act, 1994." In the present case also, the respondent has hired space in Metro Railway Coaches and in turn provides space to its client for advertisement. The facts of the present case are similar to that of Commissioner of Central Excise, Ludhiana v. Azad Publicat....