TaxTMI 
TaxTMI 
2025 (7) TMI 69
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....lants have filed this miscellaneous application, seeking change of name and address of the respondent as well as the address of the appellants in the cause title to the appeal filed by the appellants. The prayer made by the applicant-appellants is considered and accordingly, Registry is directed to incorporate the following changed name and address of the respondent as well as address of the appellants in the appeal records for the purpose of disposal of the appeal:- "Commissioner of Central Goods & Service Tax, Mumbai East 9th Floor, Lotus Info Centre, Parel Station Road Parel (East), Mumbai - 400 012". - Respondent And "M/s Rapport Outdoor Advertising Pvt. Ltd. 4th Floor, Chhibber House, Sakinaka, Andheri (East)....
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.... the gross value towards the advertisement service, for the purpose of levy of service tax. With such understanding, the Department had initiated show-cause proceedings against the appellants, which culminated into the Order-in-Original dated 07.03.2017 (for short, referred to as 'the impugned order'), wherein the learned Commissioner of Service Tax has confirmed the service tax demand on the appellants. Besides, the impugned order has also confirmed the demand of CENVAT credit availed by the appellants on various input services. Feeling aggrieved with the impugned order, to the extent it has confirmed the service tax demand of Rs.2,91,62,112/- along with interest and imposition of penalty, the appellants have preferred this appeal before t....
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.... 4. On the contrary, the learned Authorized Representative (A.R.) appearing for the Revenue reiterated the findings recorded in the impugned order and further submitted that since the printed vinyl/flex materials were supplied by the appellants pursuant to the advertisement activities, such expenditure incurred on account of procurement of the goods should form the part of gross value for the purpose of levy of service tax thereon. To support such stand, the learned AR has relied upon the judgment of Hon'ble Kerala High Court, delivered in the case of Commissioner of Central Excise & Customs Vs. Zodiac Advertisers - 2009 (13) S.T.R. 593 (Ker.). 5. Heard both sides and examined the case records, including the written submissions filed at ....
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....nce a separate contact was executed with the client for supply of the same, the value of such supplied goods therein shall not be included in the value of the service for payment of service tax thereon. Further, the amount received by the appellants towards sale of printed vinyl/flex material is not towards the provision of any advertising services, as they had not undertaken any activity like designing, visualizing, conceptualizing etc., of the advertisements. We find that the issue involved in the present case has adequately been dealt with by the coordinate Bench of the Tribunal in the case of M/s AD-inn Innovative Advertisers & Ors. (supra). The relevant paragraphs in the said order are extracted herein below: - "11.2 In this r....
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.... Judge Bench in Bharat Sanchar Nigam Ltd. (supra) stating : "78. But if there are no deliverable goods in existence as in this case, there is no transfer of user at all. Providing access or telephone connection does not put the subscriber in possession of the electromagnetic waves any more than a toll collector puts a road or bridge into the possession of the toll payer by lifting a toll gate. Of course the toll payer will use the road or bridge in one sense. But the distinction with a sale of goods is that the user would be of the thing or goods delivered. The delivery may not be simultaneous with the transfer of the right to use. But the goods must be in existence and deliverable when the right is sought to be transferred. ....
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....rvice Tax cannot be demanded in respect of cloth banners and wall painting transactions without first analyzing the nature of work undertaken by the appellant in detail." 7. The ratio of the judgment of Hon'ble Kerala High Court in the case of Zodiac Advertisers (supra) relied upon by the learned AR for the Revenue is distinguishable from the facts of the present case, inasmuch as in the said decided case, the advertisement materials were sold to the customers in the form of banner/hoarding, film slide and the same were in context with the advertisement services. However, contrary is the situation, in the case in hand, inasmuch as the appellants had entered into two distinct and separate agreements with the clients, one exclusively for s....