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2016 (12) TMI 1535 - AT - Service TaxBusiness Auxiliary Services - services of brand promotion of ‘INTEL' and ‘MICROSOFT' - activity of ‘promotion or marketing of logo or brand' - the advertisements of computers (the Appellants final products), carrying a foot note “Intel Inside” and “Microsoft Windows” logos, belonging to their respective owners - advertisement expenses is received from Intel and Microsoft? - suppression of facts - extended period of limitation - levy of penalty - difference of opinion - 3rd member decision Held that:- We need not concern ourselves with all the specific activities enumerated in section 65(19) and may restrict ourselves to that of ‘promotion or marketing or sale of goods produced or provided by or belonging to the client’. A question that arises is whether the two supplies benefit in any manner from the inclusion of their logos in the advertisement and publicity material deployed by the appellants. In scale and reputation, appellants are incomparable with the two global giants. It is difficult to conceive that the products of these two entities will find additional acceptability in the market owing to the inclusion of their respective logos. The products themselves are amenable to utilization only by computer manufacturers and the publicity, if any, among the potential customers of the two appellants is unlikely to derive any economic benefits to the supplier. At best, it may be surmised that the scheme incentivizes the appellants to procure more products from the two suppliers and to enhance the sales of the computers manufactured by the two appellants. Such a benefit to the appellants would not qualify as promotion of product of client. Indeed, the impugned order should have ascertained the existence of a client-provider relationship between the appellants and the two suppliers along the nature of the fiscal flow accruing to the appellants as a prelude to determining the taxability. The activity of ‘promotion or marketing of logo or brand’ does not cover under the category of Business Auxiliary Service - In view of the judgment in the case of Jetlite (India) Ltd. [2010 (12) TMI 40 - CESTAT, NEW DELHI], demand set aside - decided in favor of appellant.
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