TaxTMI 
TaxTMI 
2025 (12) TMI 765
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....rief facts of the case are that the appellant has rented out their property for shops, offices, restaurants and food plazas and are registered for providing 'Renting of Immovable Property Service'. They have entered into an agreement with M/s. Noel Media & Advertising Pvt. Ltd. granting rights to display advertisements in the entire Citi Centre Mall for which the appellant received 40% to 50% of the charges collected by M/s. Noel for allowing advertisements. But the appellant has not paid service tax even though the same allegedly attracted service tax under 'Sale or Space or Time for Advertisement' Service vide section 65(105)(zzzm) of the Finance Act, 1994. Hence Show Cause Notice No. 264/2013 dated 30.9.2013 was issued to the appellant f....
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....only by M/s. Noel Outdoor. She relied on CBEC's Circular dated 23.02.2009, to stress that the activity was on a collaboration basis and was hence not exigible to service Tax. The Ld. C.A. also pointed out certain quantification errors in the Show Cause Notice. She further submitted that the demand of service tax on the amount not realized is not sustainable in view of the provisions of Rule 6 of the Service Tax Rules, 1994/ Point of Taxation Rules, 2011. She stated that the demand up to September 2011 is also hit by time bar since the conduct of the appellant was guided by the CBEC Circulars. 3.2 Shri N. Satyanarayanan, Ld. Authorized Representative reiterated the findings in the impugned order. 4. The submissions of both the parties ....
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....elevant to extract the portion of the judgment of the Hon'ble Gauhati High Court in the case of Magus Construction Pvt. Ltd. Vs Union of India [2008 (11) S.T.R. 225 (Gau.)] on what constitutes a 'service' and 'service provider'. "29. In the light of the various statutory definitions of "service", one can safely define "service" as an act of helpful activity, an act of doing something useful, rendering assistance or help. Service does not involve supply of goods; "service" rather connotes transformation of use/user of goods as a result of voluntary intervention of "service provider" and is an intangible commodity in the form of human effort. To have "service", there must be a "service provider" rendering services to some other perso....
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.... Constitutional Courts above. We find from the MOU that it involves revenue sharing and the obligation of each party has been listed out. Relevant portions of the MOU are listed below: Terms & Conditions:- a. Noel Outdoor be given a grace period of eight (8) months from the date of MOU where the gross revenue be split 80% to Noel Outdoor and 40% to Citi Centre. b. For the duration of the advertising period after this initial eight (8) month grace period from the date of the MOU the revenue shall be split 50% between each of the aforementioned parties. II. Particulars . . . d) Revenue shall be calculated on the total monthly incoming advertising revenue and Noel Outdoor will maintain a mi....
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....available as advertising space. 5. Citi Centre provides the necessary electricity required to Noel Outdoor, for the operation of the display units,, this clause (III (5)) shall be re-negotiated after three (3) months of the agreement has been concluded If any disputes regarding either parties rights or responsibilities under this document should arise, and the parties are unable to arrive at a mutual resolution through their own means of discussion an independent arbitrator for each party should be appointed to mediate between the parties in a non-biased, equitable manner. In this process at arriving at a dispute resolution both parties are free to participate and contribute in the mediated discussions. In case an....
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....his own benefit, cannot be termed as "service rendered." 8. A similar issue relating to self-service on a revenue sharing basis between a distributor/producer and an exhibitor of films came up for consideration before a Coordinate Bench of this Tribunal at Allahabad, in M/s. PVS Multiplex India Pvt. Ltd. Vs Commissioner of Central Excise, Meerut-I [2017 (11) TMI-156-CESTAT Allahabad]. The Bench decided that the activity was not taxable and hence the appellant was not liable to pay service tax on the payments made to the distributors for screening the films. A similar matter in the case of M/s. Inox Leisure Ltd. Versus Commissioner of GST and Central Excise - Mumbai [2022 (5) TMI 1397 - CESTAT MUMBAI], was decided by the Mumbai Bench of t....