Service Tax
TRT-2025-
Cestat Ahmedabad
Date:-05-01-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 05 January 2023
Parties: Drishty Communication Private Limited Vs C.C.E. & S.T.-Rajkot
Facts –
- The Appellant, Drishty Communication Private Limited, engaged in sale of time and space in the newspaper/media companies for M/s. Surya Publicity on a commission basis.
- They were remitting 85% of the total 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 was issued 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. Further, it was alleged that the services provided by the sub agent M/s. Surya Publicity to their client/customers were exempted by way of Notification No. 06/2005-ST dated 01.03.2005, but the services provided by the appellant to M/s. Surya Publicity were not exempted as the appellant were not exempted under said notification.
Issue –
- Whether the appellant is liable to discharge service tax under the category of Advertising Service?
Order –
- The Tribunal finds that no evidence has been placed from record to establish that the appellant were providing “Advertising Agency Services.” The role of appellant was limited to being an intermediary in the sale of space/ time for media agency on commission basis.
- The Tribunal relied on the decision of Tribunal in case of H.K Associates, which was held in the favour of the appellant and the aforesaid decision of Tribunal has been upheld by Hon’ble Apex Court as reported in 2010 (19) STR J111 (S.C).
- In view of CBEC Circular No. 96/7/2007- ST dated 23.08.2007 and the decision of tribunal in similar circumstances the demand cannot be upheld, and is therefore set aside. The appeal is consequently allowed.
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