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TMI Blog2023 (5) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the confirmation of service tax demand on these amounts, i.e. volume discounts, rate difference and amounts written back cannot be sustained in law. Appeal allowed. - Service Tax Appeal No. 2670 of 2011 - FINAL ORDER No. A/30094/2023 - Dated:- 25-4-2023 - MR. R. MURALIDHAR (JUDICIAL) AND MR. A.K. JYOTISHI, MEMBER (TECHNICAL) None for the Appellant. Shri P. Amaresh, AR for the Respondent. ORDER The Appellant is providing advertising services wherein they get the advertising matter from the client which are forwarded to various channels like TV, Print media, etc. On the gross amount charged for such advertising, the Appellant gets 15% commission on which they are discharging the Service Tax. Apart fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this is a consideration received by the Appellant from the Media in respect of the same services, the same is liable for Service Tax payment. Hence he prays that the present Appeal may be dismissed. 4. Heard both sides and perused the documents. We find that the very issue as to whether the incentives received by the Advertising Agency from a third party i.e., Media as incentive is liable for Service Tax payment or not has been gone into in a considerable detail by the Tribunal in the case of Grey Worldwide (I) Pvt Ltd (cited by the Appellant). The Tribunal has held as under: 4.1 From the nature of the transactions undertaken in the present case, it is seen that the appellant is rendering advertising agency services to various cli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal observed that; In the present case, a person or an organization who wants to advertise their product approaches an advertising agency. Therefore such a person/organization who wants to avail the services of advertising agency becomes the client of the advertising agency. The advertisement can be done in various ways either through Print Media or through Radio or Television, etc. in order to fulfill the requirements of his client the advertising agency which is the service provider gets in touch with the appropriate media. In other words as far as the advertising agency is concerned, its client is not the media. In order to provide advertising services the advertising agency charges certain amounts from the clients. Such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of P. Gautam Co. (cited supra). In the said case the Tribunal observed that: It is seen and as correctly pointed out by the learned counsel that the Coordinate Bench of the Tribunal in the three cases as cited herein above, have held that the discounts/incentives received by the assessee from the print media will not be liable for service tax under the category of advertising agency services. If that be so, the said discounts/incentives itself cannot be considered for the purpose of taxability under the head business auxiliary services as the amounts which are received are in respect of the services provided under the category of advertising agency services and the amount are discounts and incentives and not as charge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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