Space-selling service- Any services provided by any person to any other person in relation to sale of space would be taxable from 1-5-2006 and not prior to that date

After specific category is introduced as a taxable service in the statute from a specified date, the said activity cannot be a taxable entity or technical entry in any other services prior to that date.

CASE LAWS DETAILS

DECIDED BY: CESTAT, SOUTH ZONAL BENCH, BANGALORE, IN THE CASE OF: Margadarsi Marketing Pvt. Ltd. Vs. CCE, APPEAL NO: Appeal No. ST/346/2008, DECIDED ON April 5, 2010

FACTS

The relevant facts that arise for consideration are that the appellants filed a refund claim on 22-3-2006 claiming a refund of Rs. 2,68,41,849/ being the service tax paid on commission received for news paper sales promotion service and space selling service provided during the period from 9-7-2004 to 28-2-2005. The appellants paid this tax as provider of Business Auxiliary Service (BAS) under section 65(19) of Finance Act, 1994 (hereinafter referred to as the “Act”). The claim was returned to the appellants in view of the classification of the services under BAS by the Commissioner from 1-7-2003 in the Order-in-Original No. 3/2006 Adj. ST dated 16-3-2006. On appeal against this, the Commissioner (Appeals) remanded the case to the original authority to pass an order after adhering to principles of natural justice. The refund claim consequently was resumbmitted on 29-8-2007. A notice asking them to show cause why the claim should not rejected was issued on 12-9-2007. The Assistant Commissioner of Service Tax passed an order No. 11/2007-ST-R dated 26/27-11-2007 rejecting the claim. Aggrieved by such an order passed by the Adjudicating Authority, appellants preferred an appeal to the learned Commissioner (Appeals). Learned Commissioner (Appeals) after granting an opportunity of personal hearing and considering the submissions made during personal hearing and rival submissions during hearing, did not accept the contentions raised by the appellant in their appeal and reject the appeal filed by the appellant and upheld the Order-in-Original. Hence, this appeal.

Please become a Premium member. If you are already a Premium member, login here to access the full content.