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TMI Blog2017 (8) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... d have been needed. The Nagpur Municipal Corporation holds the right to advertise and M/s. Green Thumb Innovators Private Limited have bought the right to advertise on the bus stand for a specified period. In the above circumstances, it is apparent that the appellant are involved in sale of space for advertisement and are liable to tax in respect of the bus stand - the demand is sustained except for portion, which relates to the Revenue generated on the alleged sale of space from private properties not owned by the appellant. The demand is sustained except for portion, which relates to the Revenue generated on the alleged sale of space from private properties not owned by the appellant. Penalty - Held that: - the penalty is set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lectric poles and hoarding, vehicle, bus stand, banner stand etc. The appellants are collecting taxes and license fee in respect of permission granted for putting up advertisement boards on the private properties and not providing such properties for advertisement. He argued that the owner of such properties may be involved in providing such services of sale of space for advertisement or display. Learned Counsel argued that the appellant which permits the use of its land or other immovable property for fixing poles/structures for putting up bill boards for advertisement or fixation of kiosks for advertisement on street light poles are neither selling on any space for advertisement nor are providing any service in relation to sale of space f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to between Nagpur Municipal Corporation and M/s. Green Thumb Innovators Private Limited. The very fact that the amounts is collected by virtue of an agreement between the two parties shows that they are not in the nature of tax, but are for the nature of income other than tax. If the amount collected for the activities undertaken in this agreements were tax then no such agreement would have been needed. The Nagpur Municipal Corporation holds the right to advertise and M/s. Green Thumb Innovators Private Limited have bought the right to advertise on the bus stand for a specified period. In the above circumstances, it is apparent that the appellant are involved in sale of space for advertisement and are liable to tax in respect of the bus sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin the local limits of AMC. However, the service envisaged by Section 65(105)(zzzm) of the Service Tax Act, is not of this nature and therefore, there is no question of AMC being charged service tax in relation to the fees collected for granting written permission in terms of Sections 244, 245 and 386 of the BPMC Act read together. The property being admittedly owned by a private person, as distinguished from AMC, a public body, the act of granting written permission cannot be treated to be a sale of space for advertisement, that is, providing space for display. Therefore, once it is found that AMC is not rendering any taxable service to the petitioner, in the facts of the present case, it is not possible to uphold the action of AMC in c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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