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2024 (5) TMI 936 - CESTAT HYDERABADApplicability of service tax on the transaction - Advertising Agency - service under the head ‘sale of time or space’ to their clients particularly by way of electronic bill boards - revenue sharing arrangement - transactions done through the banking channel - Nature of the agreement - HELD THAT:- Considering the facts on record and after going through the agreement between the parties, we find that the agreement is in the nature of Joint Venture/Partnership for sharing the profits of business to be carried out on by both the parties in mutual benefit. We further, take notice of the glaring fact on record, that the said business stood frustrated due to / Public Interest Litigation and the Order passed by Hon’ble High Court dated 28.08.2007, thus the said business could not be carried on and even the business of existing bill boards of the appellant had to be shut down in larger public interest. Thus, the agreement to carry on the business was frustrated due to supervening impossibility under the provisions of the contract Act, thus the parties were no longer required to perform the obligations, as the same cannot be performed. Further, admittedly, in the changed circumstances, there has been Novation of agreement due to financial difficulty of the appellant, the parties agreed to convert the deposit made by IMPL to equity, which has admittedly been agreed upon. Thus, we set aside the impugned Review Order and confirm the Order-in-Original. Accordingly, the appeal is allowed with consequential benefits.
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