2024 (7) TMI 930 - AT - Service Tax

Scope of sale of space for advertisement in print media - publication by the name of INSITE falls under the category of the newspaper or not - HELD THAT - From the registration certificate which have been produced by the learned Advocate, it is clear that the publication has been considered by the Registrar of the Newspaper for India as newspaper having periodicity of monthly publication. On the strength of this certificate of registration they clearly get excluded from the definition of Service Tax category of sale of spaces for advertisement and print media as the newspapers have been excluded from the category of print media. It is found from the record of the appeal that other publications like India plumbing today has also been registered with the Registrar of Newspaper of India as newspaper having publication periodicity bi-monthly. The publications printed by the appellant fall under the category of newspapers and thus entitled in the exclusion clause given in the definition under Section 65 (105) (ZZZM) of the Finance Act, 1994 for service category of sale of space for advertisement in print media - the finding of learned Adjudicating Authority in the impugned Order-In-Original are not sustainable in law and is set aside - appeal allowed.

Summary

Issues:
Interpretation of Section 65(105)(ZZZM) of the Finance Act, 1994 regarding the sale of space for advertisement in print media.

Analysis:
The judgment revolves around the interpretation of Section 65(105)(ZZZM) of the Finance Act, 1994 concerning the sale of space for advertisement in print media. The appellant, engaged in providing various taxable services, was charged by the department for providing space for advertising in publications. The department viewed this activity as falling under the Service Tax category of "Sale of Space of Time for Advertisement Service" under Section 65(105)(ZZZM). The impugned Order-In-Original was issued based on this view, leading to the appellant's appeal.

The appellant argued that their publication "INSITE" falls under the category of a newspaper, excluding it from the definition of sale of space for advertisement in print media as per Section 65(105)(ZZZM). They provided a certificate of registration from the Registrar of Newspapers for India to support this claim. However, the Adjudicating Authority did not give any finding on this certificate, rendering their order legally unsustainable according to the appellant.

The Adjudicating Authority confirmed the Service Tax under the sale of space for advertisement in print media, stating that the publications were akin to business directories and primarily served the purpose of advertising. They highlighted that even though some publications were registered with the Registrar of Newspapers for India, this registration alone did not exclude them from the service tax applicability. The definition under Section 65(105)(ZZZM) was analyzed, emphasizing the exclusion of newspapers and books from the category of print media for the sale of space for advertisement.

Upon reviewing the evidence, including the certificate of registration and the nature of the publications, the tribunal concluded that the appellant's publications, categorized as newspapers by the Registrar of Newspapers for India, fell within the exclusion clause of the definition under Section 65(105)(ZZZM). Therefore, the findings of the Adjudicating Authority were deemed legally unsustainable, and the appeal was allowed.

In conclusion, the judgment clarifies the interpretation of the relevant legal provisions regarding the sale of space for advertisement in print media, emphasizing the exclusion of newspapers and books from this category. The tribunal's decision was based on the evidence provided, specifically the certificate of registration categorizing the publications as newspapers, ultimately leading to the allowance of the appeal.