RAMESH RANGANATHAN, J.

In this batch of writ petitions the assessment orders passed by the third respondent, for the assessment years 2005-06 to 2008-09, are under challenge. W.P. No. 23839 of 2009 relates to the assessment year 2005-06, W.P. No. 23811 of 2009 relates to the assessment year 2006-07, W.P. No. 23810 of 2009 relates to the assessment year 2007-08 and W.P. No. 23816 of 2009 relates to the assessment year 2008-09.

The petitioner, a private limited company, is an advertising agency. It obtains licence space, on top of existing buildings and other areas, and erects metal structures on which advertisements are displayed. It is the petitioner's case that the advertisements originally used to be a painting on a metal sheet; at present it is done by printing on a vinyl sheet; the vinyl sheet is fixed to the steel structure; they pay licence fee for use of the space, and for erection of the steel structures, to the owners or other occupants of the building upon which the structure is erected; various persons including the Government of Andhra Pradesh, who intend displaying their hoardings at specified points, negotiate and enter into contracts with the petitioner for display of the hoardings; the rates are agreed upon based upon the location, size and duration, and a period hoarding fee is paid by the advertiser to the petitioner; in so far as the Government of Andhra Pradesh is concerned, the Special Commissioner, Information and Public Relations Department, issues letters to the petitioner, in the form of orders, specifying the location and size of the hoarding, the rate per square feet and the total hoarding fee for a period of one month; the terms and conditions require the petitioner to ensure good quality error free vinyl display, to take photographs with landmark locations, and submit it to the Government; they have registered themselves with the fourth respondent under the Service Tax Code; and they are paying service tax regularly, on all the hoardings that they display, at the rates applicable on the revenues from the hoardings by way of fees from participating advertisers.

The Deputy Commercial Tax Officer (Vigilance and Enforcement), vide letter dated May 14, 2009, called upon the petitioner to submit details with respect to their turnover for the years 2005-06 to 2008-09. The petitioner, in its reply dated May 19, 2009, furnished details of the turnover for each of the four financial years. Thereafter the third respondent issued notice dated July 22, 2009, in form VAT 305A, proposing to tax the petitioner under section 4(8) of the Andhra Pradesh Value Added Tax Act, 2005 (hereinafter called, "the Act"), on the ground that they were engaged in leasing of hoardings to various customers displaying their advertisements for a fixed period for a fixed amount as consideration, and the Act envisaged levy of VAT on letting out of advertisement boards and signage boards to different customers for display of advertisement of their products. The third respondent proposed to levy tax at 12.5 per cent on the revenue received by the petitioner, from the advertisement on the hoardings, treating it as lease of goods under the Act. The petitioner submitted their reply thereto on July 30, 2009. Thereafter a personal hearing was afforded to the petitioner on September 8, 2009 which they availed. The third respondent passed the impugned orders of assessment holding that there was a transfer of the right to use goods. The entire revenue, for the said assessment years, was brought to tax at 12.5 per cent.

Sri S. Ravi, learned senior counsel appearing on behalf of the petitioner, would submit that "advertising services" fall within the ambit of section 65(105)(e) of the Finance Act, 1994 where under service provided to any person by an advertising agency, "in relation to" advertisement, is liable to be charged to service tax. The learned senior counsel would refer to section 65(105)(zzzm) of the Finance Act to contend that adve