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TMI Blog2018 (8) TMI 1110X X X X Extracts X X X X X X X X Extracts X X X X ..... e definition of “Advertising Agencies” in Section 65 (3) ibid does include the phrase “any service connected with”. Discernably, this phrase has to be read in keeping with the principle of ejusdem generis. Where a law lists specific class of persons or things and then refers to that in general, the general statements only apply to the same kind of persons or things specifically listed out - When the category of service concerns and involves creativity and even specifically seeks to include “advertising consultant”, it would be too farfetched to bring in renting of hoardings within the scope of such service. The activities of the appellant cannot be brought within the fold of “Advertising Agency Services” for the purpose of Section 65 (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered by the appellants are liable for tax under advertising agency service, demanded service tax liability of Rs,2,44,910/- with interest thereon and imposed equal penalty under Section 78 of the Act. Aggrieved, appellants are in appeal before this forum. 2. Today when the matter came up for hearing, on behalf of the appellant, Ld.Advocate Shri M.Kannan draws our attention to para-13 of the order of original authority where the said authority found that appellants were renting out hoardings of two advertising agencies for display of advertisements and were charging rent. He submits that the original authority correctly relied upon the Tribunal decisions in Yespi Arts - 2008 (12) STR 331 (Tri.-Bang.); Hitech Publicities - 2008 (11) STR 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Agencies in Section 65 (3) ibid does include the phrase any service connected with . Discernably, this phrase has to be read in keeping with the principle of ejusdem generis. Where a law lists specific class of persons or things and then refers to that in general, the general statements only apply to the same kind of persons or things specifically listed out. In their landmark judgment in Kavalappara Kottarathil Kochuni. vs The State Of Madras And Others - AIR 1960 SC 1080 (Constitution Bench), the Hon ble Supreme Court opined that The rule is that when general words follow particular and specific words of the same nature, the general words must be confined to the things of the same kind as those specified. But it is clearly laid down b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtisements at various places of theatre complex in the form of hoardings etc. was addressed, it was held that the said activities cannot be regarded as Advertising Agency Service . The relevant portion of this decision is reproduced below : As such, it is clear that what is being taxed is planning and expertise involved in making, preparing display or exhibiting the advertisement and not simply providing of a place or space to the advertiser. The expression display or exhibit does not mean the physical act of display and exhibit, but relates to the services rendered, as an expert body, to the client, for the purposes of display or exhibit. The same may involve the expertise of the provider of the services to advise the client as to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inasmuch as the earlier entry relating to advertisement remains unchanged without any change in the tax rate. As such, the introduction of new tariff entry do imply that the coverage in the new tariff for the purposes of tax was an area not covered by the earlier entry. It was so held in case of Glaxo Smithkline Pharmaceutical Ltd. reported in 2006 (3) S.T.R. 711 (T) = 2005 (188) E.L.T. 171 (Tri.-Mumbai) as also in case of M/s. ZEE Telefilms Ltd. M/s. Star India (P) Ltd. v. CCE, Mumbai reported in 2006 (4) S.T.R. 349 (Tribunal) = 2006-TIOL-945-CESTAT-MUM. If it is held that the activity of sponsorship and sale of space were covered under the earlier heading of advertising agency, the same would lead to the redundancy of new legislation an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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