2019 (3) TMI 1317 - AT - Service Tax

Levy of service tax - sale of space or time for advertisement - Held that - Tribunal in the case of COMMISSIONER OF CENTRAL EXCISE, LUCKNOW VERSUS M/S LUCKNOW NAGAR NIGAM 2018 (8) TMI 1787 - CESTAT ALLAHABAD has held that such charging of fee to the agencies was a statutory levy for which municipal corporations had powers and such levies did not amount to any service so as to call for payment of Service Tax - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT ALLAHABAD ruled in favor of the appellant, a Nagar Nigam, regarding the demand of Service Tax on sale of advertisement space. The issue was previously settled in favor of Nagar Nigam in various Tribunal decisions. The Tribunal held that the charging of fee by municipal corporations for such services did not constitute a service for Service Tax payment. The impugned order was set aside, and the appeal was allowed.