indus Communications Vs. Commissioner of Central Excise

indus Communications vs Commissioner of Central Excise

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi Decided Mar 16, 2005

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Citation: sooperkanoon.com/38493
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Judge: M T K.C.
Decided On: Mar 16, 2005
Subject: Service Tax

Case Summary

AI-generated summary - not the official court judgment text.

Service Tax

Key legal issue: Service Tax

Parties & Advocates

Appellant / Petitioner

indus Communications

Respondent

Commissioner of Central Excise

Legal References

Reported In: (2005)(186)ELT336TriDel

Excerpt

1. appellants are seeking stay of recovery of rs. 24,337/- on the ground that the amount of service tax has been wrongly calculated by the lower authorities. they are giving advertisements through newspapers or periodicals on which they get 15% commission of the total value of the advertisements and they have paid service tax on 15% of the commission received by them. the case of the department is that the service tax should be paid on the full value of the advertisements.2. shri s.p. aggarwal, c.a., appearing for the applicants produced a circular issued by the advertising agencies association of india to its members whereby it is clarified that "on all bills for advertisements in the print media (newspapers, periodicals, etc.) and the electronic media (doordarshan, private tv channels, all india radio, etc.) the service tax at 5% is leviable only on the agency commission component of the bill. in other words, 85% of these bills which constitute payments due on the above-mentioned media, are to be excluded from the levy of service tax." it was pleaded that in view of this circular, they have paid service tax at 5% on the agency commission at 15% of the bill and they are not liable to pay service tax at 100% of the value of the bills as 85% of the bills constitute payments due to media.4. considering the submissions made by the appellants, i find that there is prima facie case made out by them for staying recovery of the disputed amount. in view of this, the recovery of the disputed amount is stayed and the appeal is posted for final hearing on 13-7-2005.

Full Judgment

1. Appellants are seeking stay of recovery of Rs. 24,337/- on the ground that the amount of service tax has been wrongly calculated by the lower authorities. They are giving advertisements through newspapers or periodicals on which they get 15% commission of the total value of the advertisements and they have paid service tax on 15% of the commission received by them. The case of the department is that the service tax should be paid on the full value of the advertisements.

2. Shri S.P. Aggarwal, C.A., appearing for the applicants produced a circular issued by the Advertising Agencies Association of India to its members whereby it is clarified that "on all bills for advertisements in the print media (newspapers, periodicals, etc.) and the electronic media (Doordarshan, private TV channels, All India Radio, etc.) the service tax at 5% is leviable only on the agency commission component of the bill. In other words, 85% of these bills which constitute payments due on the above-mentioned media, are to be excluded from the levy of Service Tax." It was pleaded that in view of this circular, they have paid service tax at 5% on the agency commission at 15% of the bill and they are not liable to pay service tax at 100% of the value of the bills as 85% of the bills constitute payments due to media.

4. Considering the submissions made by the appellants, I find that there is prima facie case made out by them for staying recovery of the disputed amount. In view of this, the recovery of the disputed amount is stayed and the appeal is posted for final hearing on 13-7-2005.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Delh... Same Parties indus Communications vs Commissioner of Central Excise Same Subject Service Tax Same Judge M T K.C.