9911796707
TMI Blog2022 (11) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... In the present case demand of service tax under the provisions of section 73A of the finance Act confirmed by the Ld. Commissioner without discussing the activity of appellant and without going into the facts of the case legally not correct. The Broadcasting companies deposited such amount of service tax with the Government for discharging their liabilities of service tax under the category of broadcasting service. Clearly, the role in the entire transaction of appellant is just like an mediator who collects money from the clients on behalf of the broadcasting company. It is also admitted fact in the present case that the retainership fees or commission income separately charged and collected from the clients, appellant paid the service tax under the advertising services. The said undisputed facts clearly established that the present one is not a case where the appellant had collected any amount as service tax and retained the same by not depositing the same with the Government exchequer - the Appellant has collected the service tax from the clients on behalf of Broadcasters in relations to service of Broadcasting services and transferred the said service tax amount to Broadc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y as broadcasting agency nor can be classified under Broadcasting services. Thus, appellant is neither Broadcasting agency nor has provided broadcasting services, but have collected the service tax on broadcasting charges from their clients under the category of Broadcasting Service . Appellant have contravened the provisions of Section 73A(2) of the Finance Act, 1994 in as much as they have collected the service tax, which is not required to be collected from their clients and have failed to pay the amount so collected to credit of the Central Government. The amount of service tax thus recovered by appellant from their clients is required to be recovered from them under Section 73A (3) of the Finance Act, 1994. 1.3 Accordingly, show cause notice dated 24.10.2013 was issued demanding service tax amounting to Rs. 5,74,98,622/- under Section 73A(2), 73A(3) and Section 73(1) of the Finance Act, 1994. The show cause notice also proposed to demand interest on the above amounts under Section 73B and also imposed penalties under the provisions of the Finance Act. The case was adjudicated by the Ld. Commissioner who vide impugned order confirmed the demand of service tax along with int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the following decisions :- Sri Krishna Das Vs. Town Area Committee, Chirgaon (1990) 3 SCC 645 Dot Com Advertising Vs. Commissioner of Central Excise 2019 SCC Online CESTAT 3624 2.2 He further submits that impugned show cause notice was issued after the lapse of entire period of limitation. The information sought to be allegedly suppressed was always in the knowledge of the department as is evident from the show cause notice. The Appellant s Balance Sheet had a record of all the transaction and the department was aware that the Appellant was collecting the payments and passing them entirely to the Broadcasters. The Appellant never failed to disclose any information from the department or wilfully defrauded or suppressed any relevant facts from the department. Thus entire demand is time barred and the same is liable to be dismissed. 3. On other hand Shri J.A Patel, Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. We have heard both the sides and perused the records. We find that the short issue involved in the present appeal is as to whether the amount of service tax collected by the appellant related t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition to the service of advertising agency, the appellant has been acting as a mediator/ facilitator between, the broadcasting companies and the clients. In this activity, the clients /customers approaches the appellant for marketing of their products/ services in various medium like Electronics media, Print Media, etc. The Broadcasters sell time slot in the Electronics Media to the clients/ customers, but the payment of such time slot is routed through the appellant i.e. advertising agency. The Broadcaster issues an invoices to the appellant with the details of the clients whose products/ services were advertised in the electronic media, and in turn, the appellant issues a reimbursement bill to the client which is always corresponding the bills of the broadcasting company. In the said bills also the details of program and the product/ service of the clients/ customers and service tax amount are shown. The clients / customers pays the billed amount to the appellant including the service tax amount and the same amount without any deduction or retention is passed on the broadcasting company. The Broadcasting companies deposited such amount of service tax with the Government for disch ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
