Case Law Details
Kusum Healthcare Pvt. Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Delhi)
CESTAT Delhi held that services of advertisement in print-media is exempt in terms of negative list of services under section 66D(g) of the Finance Act, 1994. Accordingly, service tax not leviable on the services of advertisement in print-media.
Facts- The appellant is a manufacturer-exporter of pharmaceutical products and is a 100% Export Oriented Units. It established representative offices in many countries to promote its goods and to liaison with the local authorities in such countries. According to the appellant, these representative offices do not have any independent revenue or clients and the purchase orders are entered with the clients directly by the appellant and so the representative offices do not enter into any contract with the clients. The payment for goods supplied to the customers is received by the appellant and all the expenses incurred in the supply of goods are claimed as expenses in India. The salaries of the employees working at the representative offices are also remitted by the appellant. The appellant also reimburses other expenses incurred by the representative offices for its operations. These expenses are in the nature of rent, security, electricity etc.
The department entertained a view that the expenses incurred by the appellant are liable to service tax on reverse charge basis.
Post submission of details of foreign expenses incurred by the appellant, iit was alleged that the appellant made payments in foreign currency to its representative offices in countries other than India and such expenses were towards business promotions, marketing and consultancy activity and were taxable in India.
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