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TMI Blog2005 (7) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... for advertising various general awareness programmes issued by the Directorate of Information and Broadcasting, Government of Gujarat. For the said purposes, the appellant was hiring the space available in Government buses, etc. and readymade advertisements were being received by them from Government departments, which were displayed on specified buses. The said work of Government departments of displaying various advertisements were being undertaken by the appellants through a DAVP. During the period 1997-98 to 2001-2002, the appellants provided such advertising services to the tune of Rs. 9,87,39,667/- but did not discharge service tax of Rs. 49,36,984/- @ 5%. It may be mentioned here that the appellant was also undertaking independent ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 of the Finance Act, 1994 for suppressing or concealing the value of the taxable services. Appeal against the above order did not succeed before the Commissioner (Appeals). Hence the present appeal. 4. We have heard Shri M.H. Patil, ld. Advocate and Shri A.K. Kaushal, ld. SDR appearing for the Revenue. 5. The appellant's main contention is that the activity of hiring bus space and then displaying the advertising material received from the Government department does not come within the purview of term 'advertisement' and such display is not covered under the definition of term 'taxable services'. It is admitted that the appellants were first booking space in Government buses and then were contacting the Government department for placi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In fact Service Tax Circular F. No. 341/43/96-TRU, dated 31-10-96 has clarified the scope of the service tax on the said services. It has been clarified that advertising agency means any commercial concern engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant. It is, thus, noticed that the scope of the service which is included in the tax net extends not only to any service connected with making, preparation of advertisement but also includes any service connected with the display or exhibition of advertisements. Inasmuch as, admittedly the appellants are a commercial agency making profit out of the activity of display of advertisements on beh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's decision in the case of Star Neon Singh v. Commissioner of Central Excise, Chandigarh reported in [2002 (141) E.L.T. 770 (T) = 2002 (49) RLT 541 (T)] is not appropriate inasmuch as in that case admittedly the appellant was only preparing sign boards at the behest of the customers. Such service was held as no advertising services. On the other hand, reliance by the ld. DR on the Tribunal's decision in the case of Commissioner of Central Excise, Ludhiana-III v. Gypsy Advertising Co. , reported in 2004 (171) E.L.T. 271 (Tri.-Del) fully applies to the fact of the instant case. 7. In view of the foregoing, we are of the view that the services rendered by the appellants to various State/Central Government departments amount to advert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and has been issued after the show cause notice was raised against to the appellants. As such, the same cannot be made the basis for the appellant to entertain bona fide reasonable belief that the service being provided by them did not attract any service tax. In view of the foregoing, we do not find any infirmity in the Revenue's action of invoking longer period of limitation. 10. The appellants have also contended that it is the entire gross amount charged by them from their client which has been taken into consideration for calculating the amount of service tax. Attention has been drawn to Para 4 of the clarification issued by the Ministry vide its circular referred above. For better appreciation, we re-produce the Para 4 of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... boards, etc. on such space. We agree with the ld. Advocate that in such a case, the activity of hiring the space and providing the same to a person, who uses it for advertisements will not meet the definition of advertisement, thus attracting no tax on the same. 12. In view of our above observation, the amount of service tax is required to be re-calculated after arriving at the correct value of the taxable service provided by the appellants, for which purpose we remand the matter to the original adjudicating authority. Inasmuch as the quantum of tax, on re-quantification is not available, we leave the matter of imposition of personal penalty upon the appellant open and to be decided by the original adjudicating authority in de novo pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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