9911796707
TMI Blog2019 (8) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... lants have purchased time-slots (FCT) from film producers and serial producers for advertisement in electronic media - HELD THAT:- The same has been made taxable only with effect from Finance Act, 2006 as indicated in CBEC Circular No.334/4/2006-TRU dated 28.2.2006 - Since the entire demand is for the period prior to March 2006, i.e., before the charging Section was introduced on this count, the same cannot be sustained. Accordingly, the demand on this account also needs to be set aside - Accordingly, demand of service tax on both counts in the impugned order needs to be set aside. Appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... m/ serial producers and sold it to advertisers. The appellant purchased time-slots for advertisement in electronic media from either telecaster or broadcasting company or from film producers or serial producers. When the time-slot (FCT) was purchased from telecasting and broadcasting company, they raise invoices and also charge and pay service tax. When time-slot was purchased from film producers or serial producers, no service tax is either charged or paid by the appellant. The show-cause notice proposed to demand service tax on purchase of time-slot (FCT) from film / serial producers. The appellant contested the demands on merit as well as on plea of limitation. Not agreeing with the appellant's contentions, the adjudicating authority confirmed the appeals. On challenge, the first appellate authority upheld the orders of the adjudicating authority. Hence, this appeal. 5. Learned counsel for the appellant submits that as far as the first issue of discount given by media to them for advertisement is concerned, he would submit that they have been discharging service tax on the gross amount received by them as commission for their services. If ₹ 100/- is the billed amount, of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at ('ii') under the category of Advertisement Agency Services. 3. The issue has been examined. The taxable service i.e. "video tape production service" is on the process of recording of any programme, event or function on magnetic tapes (including editing thereof). The tax is therefore limited to the technical function of recording or editing what is recorded and not on the entire gamut of production of serials. In case the producer hires a video-grapher or an editor, the payment made for services would be taxable at the hands of such service providers. However, no tax is leviable on the producers for selling the serial to channel. 4. Similarly, in case of FCT, selling the time allotted to a producer does not fall within the purview of "advertisement service" since this activity is not connected to making, preparation, display or exhibition of advertisement. This is akin to providing space in a newspaper or magazine for publishing an advertisement and has nothing to do with actual presentation of the advertisement. 5. The field formations may suitably be informed. 6. Trade Notice may be issued for information of the trade. 7. The receipt of this Circular may kindly be ack ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount which the advertising agency receives from the client is chargeable to service tax including any commission / discounts which they receive from the advertising media. He also relies on the Board Circular No.341/43/96-TRU dated 31.10.1996 to assert that the commission received by the advertising agency would be includable in the value of taxable services. 11. In view of the above, learned Departmental Representative urge that the impugned order is correct and calls for no interference. 12. Countering the argument, learned counsel for the appellant would submit that they are full in compliance with the judgment of the Hon'ble High Court of Madras in the above Adwise Advertising Pvt. Ltd. (supra) inasmuch as they have discharged service tax on the gross amount received from their clients. As far as the amount which has been paid to the media is concerned, the media has already discharged the service tax on this amount. On the remaining amount which they received towards their services, they have discharged the service tax liability. He would submit that they have not received any commission from the media. The print media only give them a discount of 15% and billed them f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Hon'ble High Court of Madras in the case of Adwise Advertising Pvt. Ltd. (supra) inasmuch as they have discharged service tax on the entire consideration which they received for their services. In view of the above, the demand raised in show-cause notice, confirmed in the Order-in-Original and upheld in the impugned order on the amount which they have not received as consideration i.e., the amount which they got as discount and passed on their client advertisers, is not chargeable to service tax as the same is not charged for their services. The demand on this account needs to be set aside and we do so. 16. As far as the second issue of sale of time-slots purchased by the appellant from film producers / serial producers for advertisement in electronic media is concerned, the same has been made taxable only with effect from Finance Act, 2006 as indicated in CBEC Circular No.334/4/2006-TRU dated 28.2.2006, para 3.9 of which is reproduced herein below: "3.9 Sale of Advertising Space or Time: Sale of media in television and radio by a broadcasting agency or organization is taxable under Section 65(105)(zk). Services provided by advertising agencies are taxable under Section 65 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
