CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL CHANDIGARH REGIONAL BENCH - COURT NO. I Service Tax Appeal No. 57012 of 2013 [Arising out of Order-in-Appeal No. 32/ST/Appl/CHD-1/2023 dated 25.02.2013 passed by the Commissioner (Appeals), Central Excise & Service Tax, Chandigarh] Director General State Transport ……Appellant State Government of Haryana, 30 Bays Building, Sector-17, Chandigarh-160017 VERSUS Commissioner of Central Excise, ……Respondent Chandigarh-I Central Revenue Building, Plot No.19, Sector-17C, Chandigarh-160017 APPEARANCE:

Shri B.K. Nohria and Shri N.K. Nohria, Chartered Accountants for the Appellant Shri Yashpal Singh, Authorized Representative for the Respondent CORAM: HON’BLE MR. S. S. GARG, MEMBER (JUDICIAL) HON’BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL)

FINAL ORDER NO. 60878/2025 DATE OF HEARING: 03.07.2025 DATE OF DECISION: 22.07.2025 P. ANJANI KUMAR:

Director General State Transport, Government of Haryana, entered in to an agreement with M/s. Pisces Communication (P) Ltd for providing space for advertisement on Haryana roadways busses during the period 01.08.2006 to 31.08.2008; It appeared to the Revenue that the appellant has provided taxable services of "Sale of space for advertisement", as per Section 65(105) (zzzm), during the period 01.08.2006 to 31.07.2008; the appellant had not obtained Service Tax registration and did not pay Service tax of Rs 31,08,455; appellant was requested by a letter dated 09.03.2007 to provide the details of amounts received by them in this regard from organizations/Advertising agencies; after repeated reminders the appellant replied vide their letter dated 02.07.2008 that the due service tax on Space Selling services has been deposited by their client namely M/s Pisces Communication Ltd and that they were in the process of getting registered with the Service Tax Department; the appellant was informed vide letter dated 25.07.2008 to get registered and pay service tax; various summonses dated 18.03.09, 09.04.09, 28.04.09, 28.05.09 to were issued; representative from the Office of Transport Commissioner, Haryana, finally appeared and his statement dated 05.06.2009 was recorded and stated that during the period in dispute, they had provided space for display of advertisements on their buses to M/s Pisces Communications Pvt Ltd Delhi, for an amount of Rs 2,52,72,000/- and as per the agreement, their client deposited the service tax on the same; documents in relation to deposit of service tax has already been submitted to the department; revenue was of the opinion that the challans under which, M/s Pisces Communications deposited Tax indicated the Head’ Advertising Services’; thus, it appeared that Service Tax payable by M/s Pisces Communications for the ‘ Advertising Services’, which they rendered were paid but the Service tax payable by the appellants for the service of "Sale of space for advertisement" remained to be paid; Accordingly, the a show cause notice on 18.11.2009, invoking the extended period, demanding service tax of Rs. 31,08,455, along with interest and penalties, for the period 01.08.2006 to 31.07.2008, was issued to the appellant. Additional Commissioner adjudicated the Show Cause Notice, vide order dated 19.10.2010, and confirmed the liability along with interest while imposing penalties under Sections 76,77,78 of Finance Act,1994. Being aggrieved, the appellant filed an appeal with Commissioner (Appeals), who vide impugned order dated 25- 02-2013, rejected the appeal but dropped penalty under Section 76.

Hence, This Appeal No. 57012/2013.

2. Shri B.K. Nohria, assisted by Shri N.K. Nohria, Learned Consultants for the appellants reiterates the grounds of appeal and submits on the issue of limitation that the appellant owns Haryana Roadways and is operating buses for the convenience of public within and outside the state of Haryana; the appellant had space available for the display of advertisements on 3,000 buses owned by them. He submits that the impugned o