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TMI Blog2017 (3) TMI 936X X X X Extracts X X X X X X X X Extracts X X X X ..... management of public relations. The use of the phrases “in relation to” and “in any manner” widens the scope of the taxability with reference to public relations - IPRD has prepared the overall plan to be implemented. However, for carrying-out the plan, the respondent is required to plan and organize the logistic support required in terms of the hardware as well as the experienced persons to carry-out the activities. When this is to be done on a state-wise basis, this will require considerable planning and management of the whole exercise. In our view this is to be considered as management of the public relations campaign. The activity would fall within the definition of public relation services in terms of the work carried-out by the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.2008 to 13.03.2009 for rendering the above services. The department took the view that the service rendered falls under Public Relation Service falling under section 65(105)(zzzs) and issued show cause notice demanding service tax along with interest. It was also proposed to impose penalty under various sections of the Finance Act 1994. After the due process of law, the adjudicating authority dropped the proceedings Initiated by show cause notice. Aggrieved by the impugning order Revenue has filed the present appeal. 3. The adjudicating authority has dropped the demand for service tax by observing that the activity undertaken by the respondent was neither management of any activity nor does the activity undertaken fall within the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt will fall under the category of public relations. The term Manage also means to control, to guide, to govern, to direct or to conduct affairs; thus management also includes physical or manual handling to facilitate useful outcomes or execution of work to be done. The implementation of the public relations programme of AP Government was entrusted to the respondent. In view of above, Revenue has contended that in terms of Article 5 (2) of the contract, the respondent was required to appoint experienced persons to manage the public relations management. This service will be covered with in section 65(105) (zzzs) read with 65(86c) on which service tax will be attracted. 5. With the above backgropund, we heard Shri Sanjay Jain, DR and Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence to the above definition, the services have been provided to AP Govt. From a reference to the various activities illustrated in section 65(86c), we note that the activities undertaken are to be considered as public relations. No doubt, such public relations have been undertaken by the AP Government (IPRD) to the public at large particularly in rural areas. The view taken by the adjudicating authority that such activities will need to be concerned with business, commerce or industry is without basis. The definition of the term public relation service provides that the service could be provided in any manner and should be in relation to managing the public relation of a client. The definition makes it amply clear that the scope of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l under any category mentioned in general exemptions. Even tough, the respondent is registered under advertising agency service, they failed to include the amount received from IPRD and also did not pay service tax. The service tax liability would have completely escaped but for the detection of the same by the department. We are of the view that the liability for service tax needs to be confirmed to the respondent along with the liability for payment of interest under section 75 of the Act ibid. The respondent will also be liable for penalty as proposed in the demand/show cause notice dated 8.1.2010. 12. In view of the above, the appeal filed by revenue is allowed. The cross objections by the respondent are also disposed. [Pronounce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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