2026 (9) TMI 416

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.....2006 under the heading 'Sale of Space or Time for Advertisement Service' on the consideration received by the appellant for renting of hoarding to other advertising agencies for displaying the advertisement. 2. The brief facts are alleging non-payment of service tax, proceedings were initiated and show-cause notice (SCN) dated 04.10.2010 was issued for the period from 01.04.2005 to 30.09.2007. Thereafter, adjudication authority as per the impugned order dated 09.04.2012, upheld the demand of Rs. 44,65,842/- under the heading of 'Advertising Agency Service' for the period 01.04.2005 to 30.04.2006 and Rs.82,10,787/- under the heading of 'Sale of Space or Time for Advertisement Service' for the period from 01.05.2006 to 30.....

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....rson, to whom the board is let out, is registered with Service Tax as an Assessee". 4. Learned Counsel further submits that for the period up to 30.04.2006 issue is covered as per the decision of Tribunal in the matter of CCE, Ludhiana Vs. Azad Publications - 2004 (167) E.L.T 59 (Tri.-Del.). As regards the demand after 01.05.2006, learned Counsel submits that issue is of revenue neutral situation. Learned Counsel further submits that the 'Sale of Space or Time for Advertisement Service' became a separate service w.e.f 01.05.2006 but appellants continued to follow the practice by paying service tax wherever they provided hoardings or space for advertisement to persons other than advertising agency and wherever they provided service su....

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.... is fully outside the normal period of limitation. Learned Counsel further submits that the show cause notice does not allege any positive act of concealment, and the entire demand is derived from statutory records maintained by the Appellant. There is no clandestine activity by the Appellant, and the Appellant was filing ST-3 returns regularly and declaring all its income in good faith to the best of its understanding. The CBEC, vide Circular No. 113/7/2009-ST dated 23.04.2009, has established a standard operating procedure for scrutiny of ST-3 returns by the assessing officer. Given that the Appellant was filing ST-3 returns regularly, a mere bald allegation of suppression cannot be ground to invoke the extended period. The Appellant in t....

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....matter of Azad Publications (supra) where it is held mere sub-letting site to an advertising agency without providing services of the nature defined under the Finance Act would not make the respondent liable to pay service tax. As regards the demand after 01.05.2006, we find that the issue is of revenue neutral situation. The appellant was paying service tax wherever they provided hoardings or space for advertisement to persons other than advertising agency and wherever they provided service such as hoardings or sale of space to advertising agencies, they are not paying tax since the advertising agency was paying the tax including the amount paid to them for leasing the hoardings or space. In the present case, the show cause notice does not....