2013 (8) TMI 257 - AT - Service Tax

Nature of Service Classification - business of canvassing advertisement for newspapers or periodicals - Waiver of pre-deposit Whether the service undertook by the assesse were Business Auxiliary Service u/s 65 (105) (zzb) or Advertising Agency Service u/s 65 (105) (e) - Revenue was of the view that service tax should had been paid under the category of Advertising Agency Service Held that - In the absence of such clear finding prima facie assesse was canvassing advertisement and receiving commission and they had already paid tax on commission received - It was not clear as to from where the figures were taken for issuing the demand - If it was from financial statements of the assesse Revenue had an obligation to verify the same statement to give a finding on the contention of the assesse that the monies received from the clients were remitted to the print media was correct or not waiver of pre-deposit allowed Decided in favor of assesse.

Summary

Issues:
1. Change of respondent's name to Commissioner of Service Tax, Chennai.
2. Waiver of predeposit of dues arising from Order-in-Appeal No.80/2009.
3. Taxability of amounts received from clients and remitted to print media under different service categories.

Issue 1: Change of respondent's name to Commissioner of Service Tax, Chennai
The applicant requested a change in the respondent's name to Commissioner of Service Tax, Chennai due to their current registration with the same authority. The Tribunal allowed this request, stating that in all future proceedings, the respondent's name would be recognized as Commissioner of Service Tax, Chennai.

Issue 2: Waiver of predeposit of dues arising from Order-in-Appeal No.80/2009
The applicant, engaged in canvassing advertisements for newspapers, sought a waiver of predeposit of dues arising from a previous order. They had paid service tax on commissions received but not on amounts remitted to print media for publishing ads. The Revenue argued for tax under Advertising Agency Service, while the applicant contended that only commissions were taxable under Business Auxiliary Service. The Tribunal noted that charges by print media for ads were not taxable, thus agents collecting and remitting money should not be taxed. Since there was no clear finding on the payments made to print media, the Tribunal granted a waiver of predeposit for appeal admission and ordered a stay on collection during the appeal.

Issue 3: Taxability of amounts received from clients and remitted to print media under different service categories
The Revenue argued that the applicant, registered as an Advertising Agency, should pay tax under that category. They claimed the applicant was involved in making and preparing ads, acting as an advertisement agency. However, the Tribunal noted historical clarifications exempting charges by print media from tax and found no evidence supporting the Revenue's claims. The Tribunal emphasized the lack of findings on the payments to print media and granted the waiver based on the applicant's tax payments on commissions received, ordering a stay on collection during the appeal process.

In conclusion, the Tribunal allowed the change in respondent's name, granted a waiver of predeposit for the appeal, and emphasized the non-taxability of amounts paid to print media for publishing ads, leading to a stay on collection during the appeal proceedings.