TMI Blog2012 (7) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... advertisement charges from manufacturers of medicines for publishing the details of the medicines manufactured in the "Chemist News" in monthly publication of the appellant – Held that:- The activity undertaken by the appellant cannot be considered as promotion or marketing or sale of goods produced AS details such as name of the company, name of the product, packing details, category, VAT payable, stocks price, retailer price, MRP and whether the price includes local tax or not are of use only to the chemists and druggists - the purpose is to help the members of the association to know the margins and also to ensure that by at correct price and get the proper margins in their business - mere publication of name of the company and the detai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for service tax on club or association services as well as business auxiliary service amounting to ₹ 40,37,911/- with interest. Further, penalty under Section 76, 77 78 of the Finance Act, 1994 were also imposed. Appeal filed by the appellant has been rejected. 2. Heard both the sides. 3. As regards club or association services, the Ld. Counsel fairly admitted that the observations of Commissioner (Appeals) in his order that there were no challenge to the demand for service tax on club or association service in his order is correct. However, he submits that the Government of India has made provision for not levying service tax in respect of membership fee collected by a club or association form for representing industry or com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... belonging to the client which attracts service tax as per the definition of business auxiliary service under Section 65(19) of the Finance Act, 1994. The Ld. Additional Commissioner (A.R.) on behalf of the Revenue vehemently argued that the publication of the details of the medicines/products of the manufacturers in the monthly news magazine amounts to business auxiliary service. Without the support of chemists and druggists and the sale of products by them, the medicines cannot be marketed at all. It was submitted that by publishing these details in the monthly news, the sale of the products was promoted by the association and therefore it has to be considered as business auxiliary service. On the other hand Ld. Counsel submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e product was developed, how it can be used and who should use it and in what quantity. Mere publication of name of the company and the details explained above cannot amount to sale or promotion. We find ourselves in agreement with these submissions since mere publication of name of the company and name of the product along with details relating to price, packaging and dosage would not promote the sale or marketing of the product but the information would be of use only for the chemists/druggists. In fact this information would not be of use even to the chemist who is required to dispense medicines in the shop. As submitted, the medicines are marketed and promoted through medical representatives and other means. Therefore we are not able to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailing in the country on any question decided in the decisions reported in the said reports. He submits that All India Reporter is monthly magazine meant for advocates and courts but nevertheless it was considered as a newspaper. In this case also monthly news published by them provides information useful to chemists druggists. Therefore it has to be considered as a newspaper and therefore considered as a part of print media. He submits that the very fact that sale of advertising space service was brought into the net from 01.06.07, would show that it would not be covered by business auxiliary service, prior to that date. He relies on the decision of the Tribunal in the case of BCCI reported in 2007 (7) STR 384 (Tri. - Mum.) to submit th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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