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TMI Blog2004 (10) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... for display of their advertisements. They had collected Rs. 8,37,734/- and Rs. 11,47,500/- towards rental from PEPSICO and LAQSHYA respectively. The department demanded service tax on these amounts from the respondents by treating them as Advertising Agency. These demands were contested. The original authority confirmed these demands against the assessee. An appeal was preferred to the Commissioner (Appeals) and the same was allowed. Hence the present appeal of the Revenue. 2. Ld. SDR. reiterates the grounds of this appeal and submits that the decision of the Commissioner (Appeals) based on the Board's Circular No. 341/43/96-TRU, dated 31-10-96 is not correct in view of the Tribunal's decision in Zee Telefilms Ltd . v. CCE, Mumbai [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and maintained by the respondents were designed by PESICO. In this connection, I must read the Trade Notice relied on by the Counsel. This Trade Notice reads as under :- Trade Notice No. 99/GL-9Q/CE/PRO/CAL-II/99, dated 16-9-1999 of the Calcutta Commissionerate - "Attention of the Trade and Field Formations are invited to the fact that, doubts have been raised as to whether persons engaged in the activity of compilation, printing and publishing of telephone directories. Yellow pages and business directories are covered under the definition of 'advertising agency' and accordingly liable to pay service tax. The matter has been examined by the2. Ministry of Finance, Department of Revenue (Tax Research Unit), it has been decided that in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e preparatory to the physical activity of designing. In the instant case, PEPSICO designed the advertisements, which implies that the conceptualisation and visualisation of the advertisements were also done by them. Therefore, the instant case does not fall within the field of the above exception in the Trade Notice. It, then, must belong to the general area covered by the Trade Notice. Accordingly, the benefit of the Circular is available to the respondents. On a perusal of the Tribunal's decision in Contact Advertising Agency (supra), I note that the Delhi Bench of the Tribunal took note of Board's Circular dated 16-8-1999 (which apparently formed the basis of the aforesaid Trade Notice) and held that service tax was attracted only on t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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