Case Law Details

Case Name : Group M Media India Pvt. Ltd and Others Vs. Commissioner of Central Excise (CESTAT Mumbai)
Appeal Number : [2014 (11) TMI 545-CESTAT MUMBAI]
Date of Judgement/Order :
Related Assessment Year :

In the instant case, there are eight appeals and three cross-objections filed on the following common issues:

  • Whether Service tax levy is sustainable in respect of discounts/incentives received by the Advertising agency from the print/broadcast media in respect of advertisements placed by the said agencies on behalf of customers;
  • Whether Service tax is leviable on amounts, which are outstanding and the Advertising agencies write back these amounts after a lapse of time as per the accounting procedure.

The Hon’ble CESTAT, Mumbai, relying upon the decision in the case of Gray World Wide India Pvt. Ltd. vides final order No. A/1337-1338/14/CSTB/CI dated July 30, 2014, held that Service tax is not leviable on these amounts inasmuch as these are either incentives or accounting adjustments and not consideration for any services rendered.

Accordingly, the Appeals filed by the Revenue were rejected while the appeals filed by the Assesses were allowed.

(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email:

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  1. Tejas says:

    Dear Vimalji,

    this is particular for advertisement agency?
    because we received incentive on software sale and we charged service tax. customer direct credit amount in our bank and give advise thru mail and mention Incentive on sale
    can we take benefit on service tax on incentive?
    pl help…

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November 2020