Assessee having not produced the material documents, particularly orders and purchase materials, books of account, etc. before the Tribunal/adjudicating authority, the order of the High Court as well as that of the Tribunal are set aside and the matter is remitted to the Tribunal to examine whether the assessee is undertaking the work of conceptualising, visualising and creating the advertisement or whether it is only complying with the instructions of its clients and determine whether.

Assessee having not produced the material documents, particularly orders and purchase materials, books of account, etc. before the Tribunal/adjudicating authority, the order of the High Court as well as that of the Tribunal are set aside and the matter is remitted to the Tribunal to examine whether the assessee is undertaking the work of conceptualising, visualising and creating the advertisement or whether it is only complying with the instructions of its clients and determine whether.

Income Tax
ZODIAC ADVERTISERS VS COMMISSIONER OF CENTRAL EXCISE & CUSTOMS-(Supreme Court)

Assessee Taxable service—Advertising agency services—Absence of relevant material—Material documents,particularly orders and purchase materials, books of account, etc. not placed before the Tribunal/adjudicating authority despite being called upon to do so—Therefore, orders of the High Court as well as that of the Tribunal are set aside and the matter is remitted to the Tribunal to examine whether the assessee is undertaking the work of conceptualising, visualising and creating the advertisement or whether it is only complying with the instructions of its clients, after perusing the relevant records and determine whether the assessee falls within the definition of ‘advertising agency’—Assessee is directed to pay cost of Rs. 10,000 to the Department. (Paras 3 to 5)

Leave granted.


Having heard learned counsel on both sides, we are of the view that an important question of law does arise in this case, namely, whether an assessee comes within the definition of the word ’advertising agency’ as defined in Section 65(3) of the Finance Act, 1994 as amended.


However, on perusing the record, we find that material documents, particularly, orders and purchase materials, books of accounts etc., were not placed before the Tribunal/ Adjudicating Authority despite being called upon to do so. There is a specific finding to that effect in the High Court’s Order impugned herein.


In the circumstances, we set aside the order of the High Court as well as that of the Tribunal, giving final opportunity to the appellant herein to produce all the relevant records particularly to show the nature of the work which the appellant specifically undertakes. Accordingly, the matter stands remitted to the Tribunal which would examine whether the appellant herein is undertaking the work of conceptualising, visualising and creating the advertisement or whether it is only complying with the instructions of its clients. This aspect needs further details. Therefore, we are setting aside the order of the Tribunal as well as the order of the High Court.


Subject to above, Civil Appeal stands disposed of. Assessee will pay cost of Rs.10,000/- (Rupees Ten Thousand) to the Department as cost condition precedent.



(S.H. KAPADIA)


(AFTAB ALAM)

New Delhi,

April 02, 2009.

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