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TMI Blog2008 (1) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... rtising services to various clients in the form of creative agency wherein they create advertisement by themselves or their third party media agency wherein they do media printing and /or buying for advertisement to be published in print/ electronic media. They were receiving 15% agency commission from authorized broadcasting and print media during the period April 2000 to March 2001. The appellants had passed on the above mentioned commission to their clients. The case of the department is that the appellants should have included the whole amount of commission received by them in the gross taxable value. Proceedings were initiated against the appellants for recovery of the differential service tax. The adjudicating authority confirme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding service tax on the discount of 15% received by the appellant from print media. Identical issue was the subject matter of the Tribunal in the case of Euro RSCG Advertising Ltd. Vs. CCST, Bangalore reported in 2007 (7) S.T.R. 277 (Tribunal)= (2007) 9 STJ 56 (CESTAT Bangalore) wherein the issue was decided in favour of the appellants. The following findings given in the said decision are relevant and reproduced below:- In the present case, a person or an organization who want to advertise their product approaches an advertising agency. Therefore such a person /organization who wants to avail the services of advertising agency becomes the client of the advertising agency. The advertisement can be done in various ways either through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting authority has neither considered the factual position nor the legality of the entire issue. The impugned order 12/2005, dated 27.4.2005 has no merits. Since there is no service tax liability, there is no question of imposing penalty and demanding interest. Hence, we set aside the same and allow the appeal with consequential relief. 5. Moreover, the learned Advocate stated that for a subsequent period the learned Service Tax Commissioner has passed in his order dated 17.1.2008 dropped the proceedings initiated against the appellants. 6. On a careful consideration of the issue, we find that the case is squarely covered by the above decisions. Hence, we set-aside the impugned order and allow the appeal with consequential relief. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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