Market Research Agency Service does not cover sales promotion and order procurement under a commission-based agreement.

Activities undertaken as a sales promotion agent, including supervising sales, ensuring delivery and approval of goods, and canvassing orders on commission, do not amount to Market Research Agency Service under the Finance Act, 1994. That taxable service applies only where a commercial concern conducts market research in relation to a product, service or utility; the agreement here showed promotion of sales and procurement of orders, not market research. The demand was therefore unsustainable.

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Issues: Whether the appellant's activities under the agreement amounted to Market Research Agency Service under the Finance Act, 1994.

Analysis: Market research agency service applies only where a commercial concern is engaged in conducting market research in relation to a product, service or utility, and the taxable service is one provided by such agency in relation to market research. The agreement showed that the appellant was appointed as a sales promotion agent to supervise, obtain and promote sales, ensure delivery and approval of goods, and canvass orders on commission. The nature of the activity was promotion of sales of goods and procurement of orders, not conducting market research.

Conclusion: The activity did not fall within Market Research Agency Service and the demand was unsustainable.

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