Case Law Details
Varadhi Advertisers Pvt Ltd Vs Commissioner of Central Tax (CESTAT Hyderabad)
CESTAT Hyderabad held that amount of incentive received by the Advertising Agency from the print media cannot levied to service tax under Business Auxiliary Service (BAS).
Facts- The Appellants are registered as Advertising Agency and are providers of services to various Government agencies and others by getting their advertisements published in various media channels. Mostly they take up this work for Government of Andhra Pradesh.
The Appellants were issued Show Cause Notice on the ground that they were providing the service of advertising agency and the demand was confirmed by the Adjudicating Authority. On Appeal, the Commissioner (Appeals) held that they are not liable to pay the Service Tax and allowed their Appeal. Against this Appeal, the Department had filed an Appeal before the Tribunal which was later withdrawn on account of monetary limits.
This being so, subsequently, one SCN was issued on 03.06.2008 alleging that the services provided by them amounted to provision of service under Business Auxiliary Services. Subsequently, further SCNs were issued on periodical basis and the demands were confirmed. Being aggrieved by the impugned Orders, the Appellant has filed the present Appeals before the Tribunal.
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