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2011 (3) TMI 224 - AT - Service TaxDemand - Scientific or technical consultancy - transaction value as cum-tax value - Under the marketing assistance agreement, the appellant agreed to provide marketing and product-related services and assistance to Cadila. The agreement mentioned eight services alphabetically from [A] to [H] including Market Development (Product Growth Achievement) Services [G] and Product Promotion Services [H]. Cadila was liable to pay a sum of Rs.2 crores per annum to the appellant for five years and the appellant was liable to provide marketing assistance and services to them during this period. The supplementary agreement dated 26.11.2001 between the appellant and Cadila amended the definition of services in the Marketing Assistance Agreement and accordingly there were two services to be provided by the appellant to Cadila under the Marketing Assistance Agreement and these were Production Promotion Services and Market Development (Product Growth Achievement) Services. Held that: - Amount received to be treated as gross amount - the appellant is not liable to pay service tax under the head scientific or technical consultancy on any amount collected from Cadila under the relevant agreements, and not liable to be penalized on account of these transactions - But the appellant is liable to pay service tax under the head market research agency s service on the taxable value of the services provided to Cadila under the Marketing Assistance Agreement.
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