No Service Tax liability on intermediary in the sale of space/ time for media agency on commission basis

Last updated: 10 January 2023
Quick Summary
The CESTAT, Ahmedabad has ruled that an intermediary selling advertising space or time for media agencies on a commission basis is not liable for Service Tax. The tribunal found that the intermediary's role was simply to facilitate the sale, not to provide advertising agency services. Therefore, the demand for Service Tax raised by the Revenue Department was set aside.

Court :
CESTAT, Ahmedabad

Brief :
The CESTAT, Ahmedabad in the matter of M/s. Drishty Communication Private Limited v. C.C.E. & S.T.-Rajkot [Service Tax Appeal No. 135 of 2012 dated January 5, 2023] has held that, advertising in newspapers or media agencies, where the role of the assessee was merely that of an intermediary in the sale of space/ time for media agency on commission basis, cannot lead to an inference that assessee had rendered the services as advertising agency.

Citation :
Service Tax Appeal No. 135 of 2012 dated January 5, 2023

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