2014 (8) TMI 379

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..... In the invoices it is specifically mentioned that the advertiser is Indian Oil Corporation Ltd. (applicant) - advertising agencies while discharging the service tax liability are not to take into consideration the expenses in respect of the advertisement in the electronic media - as the invoices on the strength of which credit has been availed are in the name of the applicant, therefore prima faci .....

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..... vertisement for their products. The advertising agency further engaged the services of Times Global Broadcasting Co. Ltd. for broadcasting the advertisement. The broadcasting company paid service tax in respect of taxable service provided by them and recovered the amounts from the advertising agencies. The advertising agency also raised invoices in favour of the applicant. The applicant availed cr .....

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..... the advertising agency is liable to pay service tax in respect of the preparation of advertisement material and the amount paid in respect of advertisement in the newspapers or in the electronic media will not be includible in the value of taxable services for the purpose of levy of service tax. The contention is that as the invoices issued by the broadcasting company specifically mentioned that .....

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..... he service tax liability are not to take into consideration the expenses in respect of the advertisement in the electronic media. For ready reference, the relevant portion of the Board circular is reproduced below :- 4. It is further to be clarified that in relation to advertising agency, the service tax is to be computed on the gross amount charged by the advertising agency from the client fo .....

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..... service. 7. In view of the above, as the invoices on the strength of which credit has been availed are in the name of the applicant, therefore prima facie the applicant has made out a case for waiver of pre-deposit of the dues. The pre-deposit of the dues is waived and recovery of the same is stayed during the pendency of the appeal. The stay petition is allowed. (Dictated in Court) - - .....

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