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ST – Nagar Nigam charging fee from agencies on sale of space for advertisement – as same is a statutory levy, payment of service tax on such fees is uncalled for: CESTAT

2019-TIOL-2330-CESTAT-ALL

IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
REGIONAL BENCH, ALLAHABAD

Appeal No. ST/53002/2015-CU[DB]

Arising out of Order-in-Appeal No.MRT/EXCUS/000/APPEAL-I/186/2014-15, Dated: 16.03.2015
Passed by Commissioner(Appeals-I) of Central Excise, Meerut.

Date of Hearing: 29.01.2019
Date of Decision: 29.01.2019

NAGAR NIGAM

Vs

COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX
MEERUT-I

Appellant Rep by: Shri Anil Mishra, Adv.
Respondent Rep by: Shri Gyanendra Kumar Tripathi, Dy. Commr. AR

CORAM: Archana Wadhwa, Member (J)
Anil G Shakkarwar, Member (T)

ST – The issue involved is related to demand of Service Tax on sale of space or time for advertisement from the assessee, who is a Nagar Nigam – Both the sides have agreed that the issue is no more res integra and was decided through various decisions of Tribunal in respect of Nagar Nigam – One such decision is in the case of Nagar Nigam, Aligarh – Said decision was and based upon other decisions of Tribunal in case of Lucknow Nagar Nigam – Such charging of fee to the agencies was a statutory levy for which municipal corporations had powers and such levies did not amount to any service so as to call for payment of Service Tax – No merit found in the impugned order and the same is set aside: CESTAT

Appeal allowed

Case laws cited:

Nagar Nigam, Aligarh v. CCE & ST, Lucknow decided through Final Order No.72661/2018 dated 19.11.2018…Para 2

Lucknow Nagar Nigam through Final Order No.72089/2018 dated 10.08.2018…Para 2

FINAL ORDER NO. 70196/2019

Per: Anil G Shakkarwar:

After hearing both sides duly represented by Shri Anil Mishra, learned Advocate for the appellant and Shri Gyanendra Kumar Tripathi, learned Dy.Commr.(A.R.) for the Revenue, we note that the issue involved in the present appeal is related to demand of Service Tax on sale of space or time for advertisement from the appellant, who is a Nagar Nigam. Both the sides have agreed that the issue is no more res integra and was decided through various decisions of this Tribunal in respect of Nagar Nigam. One such decision is in the case of Nagar Nigam, Aligarh v. CCE & ST, Lucknow decided through Final Order No.72661/2018 dated 19.11.2018. We note that said decision was and based upon other decisions of the Tribunal in the case of Lucknow Nagar Nigam through Final Order No.72089/2018 dated 10.08.2018. It was held that such charging of fee to the agencies was a statutory levy for which municipal corporations had powers and such levies did not amount to any service so as to call for payment of Service Tax. We therefore do not find any merit in the impugned order and the same is set aside and appeal is allowed.

(Dictated and pronounced in the open Court)

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