9911796707
TMI Blog2007 (4) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... "Advertisement services". It was alleged by the department that the appellant have not paid Service Tax for the "Scanning Charges" and "Publicity Material Charges" collected from their customers for the period 1999 to 2001. Hence a Show Cause Notice was issued against the appellant demanding Service Tax of Rs. 1,60,819/- with interest. Penalties were also sought to be imposed under Section 76 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice element involved. As the appellant were under bona fide belief that they are not covered under Service Tax they have not complied with the provisions of Service Tax. Hence no penalty is imposable on them. 3. Shri S. Venkatachalam, Advocate appeared for Personal Hearing on behalf of the appellant and reiterated what they stated in appeal. None represented the department. 4. I have carefully g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In terms of the above definition, it is clear that the person must be engated in providing of services. A person can be said to be engaged in providing services connected with advertising, if he carries on such service, not as an isolated act or transaction, but as an organized and fairly continuous activity. In the instant case the activity involved is sale of materials and not providing of servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under the provisions of sales tax act as goods sold. Hence the ratio of the above decision is squarely applicable to the instant case also. It is also a settled law that when a product is sold no service tax is payable. 5. In view of the above settled legal position, I am of the considered view that Service Tax is not payable for the sale of goods made by the appellant and when they render no s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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