2024 (12) TMI 407 - AT - Service Tax

Interpretation of the definition of book under the Finance Act, 1994 - whether pamphlets fall within the definition of book as per sub-section 1 of section 1 of Print and Registration of Books Act, 1867? - HELD THAT - When Explanation 2 of section 65 (zzzm) defines print media to include book as defined in sub-section 1 of section 1 of the Press and Registration of Books Act, 1867; it is not permitted to look into and take support of other provisions of the said Act or Oxford dictionary as has been done by the department. Reliance is rightly placed on the decision of tribunal in the case of Media World Enterprises supra wherein on comparable facts, tribunal upheld the findings of first appellate authority holding that ' There is thus no doubt that the word book occurring in clause 105(zzzm) of section 65 of the Finance Act, 1994 has to be understood in the context of the extended definition given in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867) and not in terms of any other definition in a dictionary or as understood in common parlance.' Thus, it follows that advertisement activity of the appellant through pamphlets/leaflets falls within the definition of Print media which is excluded from taxable service. As a result, impugned order cannot be sustained and the same is liable to be set aside. The impugned order is set aside - appeal allowed.

Summary

Issues:
Interpretation of the definition of "book" under the Finance Act, 1994 in the context of service tax liability for advertisement services provided through pamphlets.

Analysis:
The appeal challenged an Order-In-Appeal upholding a demand for service tax on advertisement services provided through distributing leaflets/pamphlets. The issue revolved around whether pamphlets fall within the definition of "book" under the Finance Act, 1994. The appellant contended that the Tribunal had previously decided a similar matter in favor of the taxpayer.

The Revenue argued that pamphlets, not being delivered to the government, do not qualify as "book" as defined in the Press and Registration of Books Act, 1867. The Revenue reiterated the findings of the impugned order.

The Tribunal analyzed the definitions of "book" and "print media" under the Finance Act, 1994 and the Press and Registration of Books Act, 1867. It noted that the definition of "book" includes pamphlets and every separately printed sheet. The Tribunal emphasized that the definition of "book" should be understood in the context of the Press and Registration of Books Act, 1867, and not based on common parlance or dictionary definitions.

Referring to a previous Tribunal decision, the Tribunal concluded that the appellant's activity of distributing pamphlets fell within the definition of "print media," which was exempt from service tax. Therefore, the impugned order demanding service tax was set aside, and the appeal was allowed with consequential relief.

The Tribunal's decision clarified that the advertisement activity through pamphlets was excluded from taxable services under the definition of "print media." The judgment emphasized the importance of interpreting legal terms within the specific statutory framework, rather than relying on general definitions.