V.K. Agrawal, Technical Member.- In this appeal, filed by M/s. Contact Advertising Agency, the issue involved is whether the activity of printing and publishing of yellow pages will attract levy of service tax.

2. The appellants, under their letter dated 24-5-2001, have requested that their appeal may be decided on merit. We, therefore, heard Shri R.C. Sankhla, ld. DR, and perused the records. The appellants have submitted, in their Memorandum of Appeal that they are (i) printing and publishing yellow pages and (ii) booking advertisements for newspapers and magazines; that the Assistant Commissioner under Adjudication Order No. 73/AC/99 dated 14-9-1999 held that advertisements through yellow pages do form source of advertisement and the amount is charged from the clients whose name, particulars, etc., are included in the yellow pages and as such, it would attract service tax; that the Commisioner (Appeals) under the impugned order rejected their appeal holding that they were providing services for advertisements in yellow pages; that their activity is not solely of printing and publishing as in print media but they act as advertising agency. The appellants have relied upon the Ministry of Finance’s letter F. No. 345/4/97-TRU, dated 16-8-1999 in which, it has been clarified that yellow pages being print media, no service tax is chargeable on the advertisement booked for yellow pages; that the Commissioner (Appeals) had not taken into consideration the said letter which was clearly mentioned and enclosed with the appeal; that time-limit of 6 months does not apply as it is allowing of refund like allowing of refund by the Commissioner (Appeals), CEGAT and judicial authorities.

3. The ld. D.R. opposed the arguments by submitting that the provisions of time-limit will be applicable and substantial amount, the refund of which is sought, is beyond the period of six months; that the Ministry’s letter was not referred to by them before the Adjudicating Authority.

4. We have considered the submissions of both the sides. The clarification issued by the Ministry is contained in the letter dated 16-8-1999 and certainly the appellants who submitted their reply on 5-7-1999 could not have referred to the said letter. The Assistant Commissioner also appears to be not aware of the said letter as he has mentioned in the adjudication order that "there is levy of S.T. on advertisement for yellow pages." The Ministry under letter dated 16-8-1999 has clarified as under :

"I am directed to state that doubts have been raised as to whether persons engaged in the activity of compilation, printing and publishing of tele- phone directories, yellow pages and business directories are covered under the definition of ‘advertising agency’ and, accordingly, liable to pay service tax.

The matter has been examined. Section 65 of the Finance Act, 1994 defines an advertising agency as a commercial concern engaged in providing any service connected with the making, preparation, display or exhibition of advertising and includes advertising consultant. Vide letter No. 341/43/96-TRU, dated 1st October, 1996, it was clarified that in relation to an advertising agency, the service tax is to be computed on the gross amount charged by the advertising agency from the client or services in relation to advertisements. This would, no doubt, include the gross amount charged by the agency from the client for making or preparing the advertisement material irrespective of the fact that the advertising agency directly undertakes making or preparation of advertisement or gets it done through another person. However, the amount paid, excluding their own commission by the advertising agency for space and time in getting the advertisement published in print media or the electronic media will not be includible in the value of taxable service for the purpose of levy of sevice tax. The commission received by the advertising agency would, however, be includible in the value of taxable serv