1. After hearing both sides, represented by Shri Kakwani, learned Advocate and Shri Sanjay Singhal, ld. JDR, we find the Commissioner (Appeals) has dismissed the appeal filed by the appellant on the ground of non-deposit of entire duty and penalty as directed by him vide the stay order dated 12-8-2003.
2. We find that the said demand has been confirmed against the appellant on the ground that by displaying the advertisement of various products in movie "Yaadein", produced by it, they are liable to pay Service Tax on the total amount of receipt from the various manufacturers of the goods whose product has been advertised, in terms of provisions of Section 65(3) of Chapter V of Finance Act, 1994. It has been held by the lower authorities that the definition of "Advertising agency" is very wide and includes any commercial concern engaged in providing any service connected with the making, preparation, display or exhibition of advertisements. Our attention is also drawn to the Trade Notice No. 1/96-ST, dated 31-10-96 wherein it has been clarified that "if the film producer chooses to charge the client directly, for the film or documentary produced by him then the film producer is to be regarded as having rendered services to the client in relation to advertisement and he will, therefore, be liable to pay service tax accordingly".
3. In view of the above, we are of the view that the appellants have not able to make a prima facie case in its favour so as to allow the stay petition unconditionally. No financial hardship has been claimed before us.
4. Accordingly after taking note of the situation, we direct the appellants to deposit an amount of Rs. 8 lakhs within a period of 30 days from the receipt of the order, the period suggested by the learned Advocate and report compliance to Commissioner (Appeals) within a period of 15 days thereafter, who shall then decide the appeal on merit. Stay petition and appeal are disposed off by way of remand.