9911796707
TMI Blog2023 (1) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... l amount received from their customers on getting space/time from media agencies or news papers or various publications. They were retaining the 15% of the remaining amount as their commission. The appellants were paying Service Tax on the said commission amount. A Show Cause Notice were issued to the appellant seeking to classify the service provided by them under definition "Advertising Agency Service" taxable service under Section 65(105)(e) of the Finance Act 1994. Section 65 (3) of the Finance Act, 1994 which was inserted by the Finance Act, 1996 w.e.f. 01.11.1996 reads as under: "advertisiong agency" means any person engaged in providing any service connected with he making, preparation, display or exhibition of advertisement and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax. 2.2 Learned Counsel also relied on the clarification issued by CBE C vide Circular No. 96/7/2007- ST dated 23.08.2007, wherein following table has been classified: Reference Code Issue Clarification 004.01/ 23.08.07 Persons/agencies canvass advertisements for publishing, on commission basis. Such persons/ agencies do not provide any other services like making preparation, display or exhibition of advertisement. Whether merely canvassing advertisement for publicshing on a commission basis by persons/agencies is classifiable as Advertising Agency Service [section 65 (105)(e)] or not? Merely canvassing advertisements for publishing, on commission basis, is not classifiable under the taxable service falling under section 65(10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er M/s. H.K. Associates have rendered the services of advertising agency to KBPL. It is not disputed that actual work of painting on the walls/advertisements were undertaken by various parties to whom M/s. H.K. Associates have paid the amount as mentioned earlier. No evidence have been relied upon to hold that M/s. H.K. Associates have conceived, designed, prepared the advertisements in question. 7.2 The amounts paid to M/s. H.K. Associates have been accounted under the category of advertisement and sales promotion expenses by KBPL. A portion of the sum so received was spent on advertisement by H.K. Associates. These facts alone cannot lead to an inference that M/s. H.K. Associates have rendered the services as advertising agency and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
