JUDGMENT:

S.B. Sinha, J. -- Leave granted.

2. Whether the charges collected towards the services for evolution of prototype conceptual design (i.e. creation of concept), on which service tax had been paid under the Finance Act, 1994 as amended from time to time is liable to tax under the Karnataka Value Added Tax Act, 2003 (the Act) is the question involved in this appeal which arises out of a judgment and order dated 29.11.2006 passed by a Division Bench of the Karnataka High Court in STA No.7 of 2006.

3. Appellant is an advertising agency. It provides for advertisement services. It creates original concept and design advertising material for their clients and design brochures, annual reports etc. The Contract between the appellant and their clients does not appear to have been entered into in writing as no written contract as such has been placed before us.

4. We may notice a purchase order and the invoice which have been produced before us and the authenticity whereof is not in question :

ESTIMATE

P & PR Unit

M/S ISRO HEADQUARTERS ,

Antariksh Bhavan, New BEL Road ,

Bangalore