AJANTA FABRICATION Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellant is engaged in the making of Hoardings, Sign Boards and signages. He got a contract from Uttaranchal Tourism for preparation and fixation of signages in Kumaon Region of Uttaranchal State in March, 2001. The design of signages, their colour schemes etc. were provided by the State tourism authority. The tender described the work as under: From, No. 2424/2 -10 -18/99 Director Tourism Uttaranchal, Dehradun To, Ajanta Fabricators, Ajanta House, Ganga Vihar, Haridwar Road, Rishikesh. D.Dun : Dated 31 -3 -2001 Sub: Preparation and fixing of signages in Kumaon Region. Sir, Please refer to your tender no -AF/DT -99/1, dated 30 -7 -99 and further letter no -Nil dated 23 -3 -2001 on the above subject. We are pleased to place orders to your unit for the preparation and fixing of signages, in Kumaon Region as per the following specifications and rates:

(2.) SERVICE Tax Authorities took the view that the services provided by the appellant was in the category of advertising service and was liable to service tax accordingly. Therefore, a show cause notice dated 17 -2 -04 was issued demanding service tax of about Rs. 44,000/ - (Rupees Forty Four Thousand only) and proposing to impose penalties for non -payment of the tax on time. The appellant resisted the proposal by contending that the it was not an advertising agency nor was the service rendered by it in the nature of advertisement. It was contended that appellant was merely a painter/writer of signage boards and such work fall appropriately in the category of manufacture. These contentions failed and the case was decided against the appellant in adjudication and in appeal before Commissioner (Appeals) made one. The present appeal before us is directed against those orders.

(3.) THE finding in the order is that Section 65 of the Finance Act 1994 has defined ''advertising agency" as "any commercial concern engaged in providing any service connected with the making, preparation, display or exhibition of advertisement" and that the preparation and installation of signages by the appellant are within the definition of taxable service. The orders have rejected the appellant's contention that its service is not advertising service as explained in Circular No. 341 -43/96 -TRU dated 13 -1 -96 and as held in this Tribunal's decision in the case of Star Neon Sign. v. CCE, Chandigarh