2019 (3) TMI 1283 - AT - Service Tax

Levy of service tax - amount collected by Nagar Nigam for allowing display of advertisement under the category of Sale of Space or Time for Advertisement Service - Held that - The issue is covered by the precedent decision of the Tribunal holding that such activities are not taxable inasmuch as the amount is being collected towards legal fee by the Municipal Corporation and cannot be treated as consideration for providing services for Sale of Space or Time for Advertisement Service - Reference can be made to the Tribunal s decisions in the case of M/s Nagar Nigam, Kanpur V/s Commissioner, Central Excise & Service Tax, Kanpur 2018 (9) TMI 1207 CESTAT ALLAHABAD - Appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Whether service tax is leviable on the amount collected by Nagar Nigam for allowing display of advertisement under the category of 'Sale of Space or Time for Advertisement Service'.

Analysis:
The judgment by the Appellate Tribunal CESTAT ALLAHABAD, delivered by Mrs. Archana Wadhwa and Mr. Anil G. Shakkarwar, addressed the issue of the levy of service tax on amounts collected by Nagar Nigam for displaying advertisements. The Tribunal considered the argument presented by both sides, represented by Shri Sanjeev Kumar for the appellant and Shri Sandeep Kumar Singh for the Revenue. The core issue revolved around whether the collected amount falls under the ambit of 'Sale of Space or Time for Advertisement Service'.

The Tribunal noted the consensus between both parties that the issue had already been settled by previous decisions of the Tribunal. These decisions established that the amount collected by Nagar Nigam was akin to legal fees and not a consideration for providing advertisement services. Reference was made to the Tribunal's rulings in specific cases such as M/s Nagar Nigam, Kanpur V/s Commissioner, Central Excise & Service Tax, Kanpur, and M/s Nagar Nigam V/s Commissioner of Central Excise & Service Tax, Meerut-I. Based on the precedents cited, the Tribunal concluded that the impugned order was to be set aside, and the appeals were allowed with consequential relief.

In summary, the judgment clarified that the amount collected by Nagar Nigam for allowing advertisement displays did not attract service tax as it was deemed as legal fees rather than consideration for advertisement services. The decision was based on established precedents and rulings of the Tribunal, providing a clear resolution to the issue at hand.