2014 (9) TMI 857

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..... ce tax of Rs. 54,55,487/- has been demanded under reverse charge mechanism from the appellant on the ground that they have incurred expenditure for advertising and publicity which amounted to 'sponsorship service'. The case of the Revenue is that appellant has been giving donations and sponsoring events and in all such cases, the condition is that the receiver of funds from the bank should .....

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..... tion of logo or name, it was submitted that in some cases where donations are made for construction of buildings or construction of water tanks, etc., 'donated by the bank name' is displayed. According to the appellant, it cannot be considered as sponsorship and is not covered by the service. 2. Learned AR takes us through the definition of 'sponsorship service' and submits that i .....

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..... that the appellant's activities are covered by the last portion of the definition where service provided is under obligation to provide something in return. It is the claim of the Revenue that appellant has put a condition that either their name should be displayed or the person providing the service should get more business. The important question is whether there should be an event at all fo .....

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..... ic image to public attention by associating with a popular or successful event. This is an alternate form of advertisement. Consideration is normally paid in return for naming of the event after the sponsor or displaying the sponsoring company's logo or trading name or giving the sponsor exclusive or priority booking rights. Service tax is leviable only when the sponsor is anybody corporate or .....

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..... aid it with interest. Further, it was submitted that there could not have been any intention to evade tax or there could not have been any hesitation to pay tax since the appellant would have been eligible to take credit of the service tax paid by them and use the same for payment of service tax on the services rendered by them. That being the position, we have to take a view that appellant has ma .....

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