Publication of product details held not to be business auxiliary service where the material was informational, not promotional.

Charges collected for publishing manufacturers' product details in a monthly association publication did not constitute business auxiliary service. The publication was found to contain only limited informational particulars, such as company name, product name, packing details and price information, and was considered useful to chemists and druggists for margin and price awareness rather than for promoting or marketing the goods. The activity was treated as closer to sale of space in a publication than a promotional service, so the service tax demand on this count was unsustainable.

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Issues: Whether the charges collected for publishing manufacturers' product details in the association's monthly publication constituted business auxiliary service.

Analysis: The publication carried limited particulars such as name of the company, product name, packing details and price information. Such material was held to be informational and primarily useful to chemists and druggists for knowing margins and prices, rather than to promote or market the goods. The activity did not amount to promotion or marketing of the manufacturers' products within the scope of business auxiliary service. The publication was also treated as more closely resembling sale of space in a monthly news publication than a promotional service.

Conclusion: The activity did not fall within business auxiliary service and the service tax demand on that count was unsustainable.

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