VARADHI ADVERTISERS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THE present application has been filed in the appeal arising from the order passed by Commissioner (Appeals), Hyderabad on 20 -5 -2009. By the impugned order, the liability of the Appellant to pay the service tax in terms of the order of the Adjudicating Authority dt. 31 -10 -2008 has been confirmed but the actual liability has been restricted for the period of one year only as the demand in relation to the period beyond one year has been held to be barred by limitation.

(2.) THE Ld. Advocate for the Appellants while referring to Rule 32 read with Rule 24 of Rules governing Accreditation of Advertising Agencies, and placing reliance in the order of the Tribunal in the case of Mudra Communications (P) Ltd. v. CCE, Calicut reported in : 2010 (18) S.T.R. 48 submitted that the Appellants are providing advertising agency services and are members of Indian Newspaper Society and are governed by the said rules and transactions between the publisher of the newspaper and the Appellants are on principal to principal basis and therefore, the trade discount received by the Appellants is not in the form of commission agents. The definition of taxable services excludes the activity of sale of space for advertisement in print media and considering the nature of activity by the Appellants, the same does not warrant the service tax in relation to the trade discount so received on such services.

(3.) THE Ld. Advocate for the Appellants has also drawn our attention to a notice received by the Appellant on 29 -1 -2010 from the Indian Newspaper Society, while arguing that in terms of Rule 24 and 25, the limitation for payment of monthly bills by the members of the Society has been fixed to be 60 days irrespective of the fact whether the payment of the advertisement has been received from the clients or not.