2023 (3) TMI 173 - AT - Service Tax

Levy of Service Tax - expenses incurred in foreign currency on business promotion and other activities - reverse charge mechanism - obsolete provisions - Business Promotion Expenses - Advertisement services.

The first submission advanced by the learned counsel for the appellant that the impugned order has been passed on obsolete provisions of law which are not applicable for the relevant period deserves to be accepted - HELD THAT:- Though the show cause notice dated 18.4.2016 invoked provisions of law which were applicable during the relevant period, but the impugned order held that Business Auxiliary/Business Support/Advertisement Agency/Business Consultant services received by the appellant were liable to service tax as per the provisions of the erstwhile section 66A of the Finance Act, read with rule 3 of the 2006 Rules - This apart, the issue involved in this appeal has also been decided in favour of the appellant in the appellant‟s own case. On an identical issue, for period 2006-07 to June 2012, the Tribunal decided the issue in favour of the appellant in M/S. KUSUM HEALTHCARE PVT. LTD. VERSUS C.C.E., JAIPUR-I [2018 (2) TMI 1408 - CESTAT NEW DELHI]. For the period July 2012 to November 2013 also, the Tribunal decided the issue in favour of the appellant in M/S. KUSUM HEALTHCARE PVT. LTD. VERSUS C.C.E., ALWAR [2018 (7) TMI 919 - CESTAT NEW DELHI]. For the period December 2013 to August 2014, the Tribunal decided the issue in favour of the appellant in KUSUM HEALTHCARE PVT LTD VERSUS COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, ALWAR [2021 (10) TMI 229 - CESTAT NEW DELHI].

Thus, as the issue involved has been decided in favour of the appellant in the own case of the appellant for pre-negative list and post-negative list, the demand deserves to be set aside.

Business Promotion Expenses - HELD THAT:- The said amount was directly paid by the appellant and even the invoices were raised upon the appellant and not the representative offices - amount not taxable.

Advertisement services - HELD THAT:- According to the appellant, both prior and post the amendment of clause (g) of section 66D of the Finance Act, sale of slots in advertisement in print media did not attract service tax liability. The appellant had discharged service tax liability on expenses for non-print media advertisements. The services of advertisement in respect of print-media is exempted in terms of the negative list of services under section 66D(g) of the Finance Act. Thus, the appellant is not liable to pay service tax on the service of advertisement in print- media.

It is not possible to sustain the order dated December 01, 2016 passed by the Commissioner - Appeal allowed.