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TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 1828
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....ith the same issue whether the services rendered by the appellant is included in the expression "Selling of Space of time slots for advertisement other than advertisements broadcast via radio or television" as provided in the Negative List of service under Section 66D(g) of the Act w.e.f. 01.7.2012. Considering the definition of 'Advertising Agency' as defined under Section 65(3), it was noticed that as per the advertising service, display of advertising is one of the various advertising services but by virtue of Entry provided in the Negative List, 'Selling of Space for Advertisement' is not taxable. The Bench had drawn a clear distinction between the service of advertising agency or service of sale of time or space for advertisement. In view thereof, it was observed as under:- "6.8. Whereas, as per the facts available on record the concept of visualization, conceptualization, preparation of advertisement were done by some other persons and the appellant only provided the space for displaying such advertise therefore, the appellant's activity is clearly limited to "Selling of space or time slots for advertisements other than advertisements broadcast by radio or televi....
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....e)] and Zodiac Advertisers Vs. CCE, Cochin [2006 (3) STR 538 (Tri.-Bang.)], where the Bench concluded that the appellant is not involved in conceptualization, visualization and designing of the advertisement, hence they do not fall under the category of "Advertisement Agency". Thus, the activity of selling space for advertisement carried out by the appellant cannot be held taxable. 4. The decision of the Ahmedabad Bench was challenged by the Department and the Apex Court did not find any infirmity in the Final Order of the Tribunal except for clarification in para 6.8, which has been noted to be on issue not disputed by the appellant. Thus the decision of the Tribunal that the service of 'Sale of Space' for advertisement by the appellant on their hoardings/Bill Boards etc. stands covered under the Negative List during the period 01.07.2012 to 30.09.2014 and, therefore, the demand is unsustainable, stands affirmed by the Apex Court. 5. The Ahmedabad Bench then considered the issue of 'bundled services' as the Department was of the view that the appellant's activity to be an activity of 'Advertising Agency' by taking into account the activity of displaying the printed advertise....
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....ed under the said category. The Adjudicating Authority confirmed the demand holding that the activities as composite work of "Sale of Space for Display of Advertisement" and "Erection, Installation and Maintenance" and, therefore, it was a case of bundled services, the taxability of the same has to be decided in terms of Section 66F of the Act. Being aggrieved, the appellant had preferred an appeal, which has been rejected by the Commissioner (Appeals). Hence, the present appeal has been filed. 7. Having heard both the sides and perused the records of the case, we find that the present case is squarely covered by the decision in the case of Shah Publicity, both factually as well as the period involved being the same. The relevant legal provisions with reference to the present controversy are set out below:- "Section 65: In this Chapter, unless the context otherwise requires,-- (3) "advertising agency" means any [person] engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant; Negative List of Services 66D. The Negative List shall comprise of the foll....
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....nd the description provided in the invoices is media space. It was also noticed that in the invoices, there is no charges for the services such as making of advertisement or preparation of advertisement e.g. visualizing, conceptualizing, designing, etc. and in that view, it was concluded that the invoices raised by the appellant is not for making or preparation of advertisement but only for the display charges for space used for displaying of such advertisement. Following the observations, we find from the invoices annexed that the appellant has charged consolidated amount towards space for advertisement which is at fixed rate and fixed period. There are no separate charges towards different elements of the impugned services. Thus the services rendered are limited to display of advertisement, which squarely falls in the Negative List. 10. Coming to the issue of 'bundled service', we find that the activities performed by the appellant includes sale of space, printing, fabrication, installation, and maintenance. From the contents of Section 66F(3)(a) as quoted above, services, which are 'bundled service' has to be classified in accordance with the service which imparts the 'essent....
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.... not been substantiated by the Revenue. We also find that in the decision of Shah Publicity, the Bench held that the issue whether the service of appellant falls under the entry of 'Sale of Space for advertisement' in the Negative List or otherwise, being one of interpretation, the extended period cannot be invoked. It was also rightly noted that the appellant were under the bona fide belief that the service of sale of space for advertisement covered under the negative list for the period from 01.07.2012 to 30.09.2014 and for that reason, they were not discharging the service tax on the services. We, therefore hold that the demand is barred by limitation. 13. In view of our discussion above, we do not find any merit in the impugned order and the same is set aside. The appeal is, accordingly allowed. [Order pronounced on 27th April 2026] ============= Document 1 ANNEXURE-7 84 BIRLA CORPORATION LIMITED UNITS : BIRLA CEMENT WORKS & CHANDERIA CEMENT WORKS agar. CHANDCHIA. CHITTORGARH - 318 021. (Rajasthan) Gram : CEMENT DIRLA W/s Krrish Publicly My Services (P) LEd. Fiat No. 103, Railway Villa Apartment Complex, Plat Nu. D-x11, Power House Rond, Gaal Park, Jal....