2009 (7) TMI 601 - AT - Service Tax

Advertising agency- The appellant submits that Service Tax liability payable by the appellant is during the period 2002-03, 2003-04 and 2004-05. It is his submission that the entire Service Tax liability had been worked out based on the presumption that they have received amounts as indicated in the show-cause notice from their customers. It is his submission that they have not received the entire amounts from their customers, and such amounts may need deduction for arriving at Service Tax liability. Held that- the appellant is liable to pay Service Tax liability on the Advertising Agency, tax liability has to be worked out based on the amounts received from their customers only. Thus remand back the matter.

Summary

Issues: Service Tax liability of the appellant under the category of "Advertising Agency".

In this case, the appellant appealed against the Order-in-Appeal passed by the Commissioner regarding their Service Tax liability as an "Advertising Agency". The appellant argued that the Service Tax liability was calculated based on presumptions of amounts received from customers, while they claimed not to have received the full amounts. The appellant's submissions were not adequately considered by the lower authorities, leading to a lack of evidence evaluation. The Tribunal found that the appellant's services fell under the category of "Advertising Agency" but emphasized the need to determine the exact Service Tax liability based on actual amounts received from customers. The Tribunal set aside the impugned order and remanded the matter back to the Adjudicating Authority for a fresh consideration. The Adjudicating Authority was directed to allow the appellant to present evidence and provide a personal hearing before reaching a final decision. The appeal was allowed for remand to the Adjudicating Authority for proper reconsideration.