2001 (5) TMI 1 - AT - Service Tax

Summary

Issues:
Whether the activity of printing and publishing of yellow pages will attract levy of Service Tax.

Analysis:
In this appeal, the Appellants, a printing and publishing agency, contested the imposition of Service Tax on their activity of printing and publishing yellow pages and booking advertisements for newspapers and magazines. The Assistant Commissioner had held that advertisements through yellow pages attract Service Tax as they form a source of advertisement. The Commissioner (Appeals) upheld this decision, stating that the Appellants were acting as an advertising agency, not solely engaged in printing and publishing. The Appellants cited a Ministry of Finance letter clarifying that yellow pages, being print media, are not subject to Service Tax for advertisements. However, the time limit for seeking a refund was contested.

The Appellants argued that the Ministry's letter exempting yellow pages from Service Tax was not considered by the lower authorities, and the issue of the time limit for seeking a refund was not addressed in the impugned Order. The Tribunal noted that the Ministry's letter clarified that printing and publishing yellow pages do not attract Service Tax, but Service Tax is applicable to advertising agencies providing services like conceptualizing and designing advertisements. The Tribunal set aside the impugned Order and remanded the matter to the Assistant/Deputy Commissioner to reevaluate the chargeability of the activity to Service Tax in light of the Ministry's letter and to consider the time limit and unjust enrichment, providing a fair hearing to the Appellants.

This judgment emphasizes the distinction between printing and publishing yellow pages, which do not attract Service Tax, and advertising agencies providing advertisement-related services, which are subject to Service Tax. It highlights the importance of considering relevant government circulars in tax assessments and ensuring a thorough examination of all aspects, including time limits and unjust enrichment, in adjudicating tax matters.