9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (7) TMI 898 - AT - Service TaxAdvertisement services- The applicant is providing the service of advertising agency. The applicant is procuring advertisement and arranges the space in media. Department made a demand of service tax. Held that- As the appellant is making arrangements for display of the advertisement in the media at a particular time prima facie it is not a fit case for total waiver of amount of service tax. Thus direct to pre-deposit the amount.
Issues: Application for waiver of pre-deposit of service tax and penalty for an advertising agency service.
Analysis: The applicant, an advertising agency, filed an application seeking a waiver of pre-deposit of service tax amounting to Rs. 1,81,495 and penalty. The applicant's primary argument was that they operate on a commission basis by procuring advertisements and providing them to the media for display on specific dates. Additionally, they highlighted that some advertisements were procured on behalf of Railways, which is exempt from service tax. The applicant also emphasized the financial hardship that would arise if the amount in question was deposited. The Judicial Member for the case referred to the definitions of 'advertisement' and 'advertising agency' under sections 65(2) and 65(3) of the Finance Act. It was clarified that an 'advertising agency' encompasses any commercial organization offering advertising services or exhibiting advertisements. Moreover, an 'advertising agency' includes any individual engaged in providing services related to displaying advertisements. The Judicial Member reasoned that since the applicant arranges for advertisements to be displayed at specific times in the media, they are indeed liable for service tax. Upon careful consideration of the facts and circumstances, the Vice President found that based on the definition of 'advertising agency' in the Finance Act, the applicant's case did not warrant a complete waiver of the service tax amount. However, taking into account the financial hardship claimed by the applicant, a directive was issued for the deposit of Rs. 90,000 within six weeks. Once this pre-deposit amount was made, the remaining service tax amount would be waived, and the recovery of the waived amount was stayed pending the appeal process.
|
