Service Tax Not Payable Due to Cost-Sharing Without Service Element in Advertisement Expenses: CESTAT Chennai

Panasonic Home Appliances India Co. Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai) The appeal arose from an order confirming service tax demands on the appellant under the category of “Business Auxiliary Service” (BAS) for advertisement and sales promotion activities undertaken in India. The appellant, engaged in manufacturing and trading household appliances and related products, had entered into an agreement with its foreign group company for advertising and promoting certain products. Under this agreement, the appellant incurred promotional expenses in India, raised d...