Service Tax Demand Set Aside as Joint Advertisement Was Cost Sharing, Not Sponsorship

GR Thanga Maligai Vs Commissioner of GST and Central Excise (CESTAT Chennai) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, allowed the appeal and set aside the demand of service tax along with interest and penalty arising from classification of a joint advertisement arrangement as “sponsorship service.” The appellant, engaged in the sale of gold jewellery, had entered into a “Co-Op Partner Agreement” with the World Gold Council (WGC) to jointly promote 22 karat gold jewellery through media advertisements. Under this arrangement, WGC agreed to contribute up t...