2018 (6) TMI 1527 - AT - Service Tax

Space or time selling service for advertisement - whether sale of space by Municipal Corporation for advertisement and charge of legal fee of the amount for providing taxable services under the category of space or time selling service for advertisement are liable to service tax? Held that - The issue is no more res integra and stands settled by the Hon ble Gujarat High Court in the case of Selvel Media Services Pvt. Ltd. Vs. Municipal Corporation of city of Ahmedabad 2010 (3) TMI 1011 - GUJARAT HIGH COURT and it was held that grant of permission is part and parcel of function of Municipal Corporation in the form of public duty to be ensure better Municipal governance and cannot be termed as services rendered to agents. Appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT ALLAHABAD ruled that the sale of space by Municipal Corporation for advertisement and charging legal fees for providing taxable services under "space or time selling service" are not liable to service tax. The decision was based on precedents from the Hon'ble Gujarat High Court and a Tribunal decision. The impugned order was set aside, and the appeal was allowed in favor of the appellant.