2012 (7) TMI 256 - AT - Service Tax

Waiver of pre-deposit - Demand of service tax - Advertising Agency Service - For the selling activity in Ukraine, the applicants have appointed dealers/agents for promoting the sale of the applicant s products Held that - Dealers/agents are promoting the business of the applicant and they are not the advertising agency, therefore, the demands in the category of advertising agency is not sustainable. In favor of appellant.

Summary

The Appellate Tribunal CESTAT, Mumbai granted waiver of pre-deposit of service tax, interest, and penalties to the manufacturer of P & P medicaments selling products in Ukraine through appointed dealers/agents who promoted sales via advertising. The Tribunal found that the demands categorized as advertising agency were not sustainable as the dealers/agents were not functioning as such.